IRELAND: CBI Updates UCITS Questions and Answers

Friday June 25 2021

On 24 June, the Central Bank issued the 31st Edition of the Central Bank UCITS Q&A document, which includes a new Q&A, ID 1099.

The new Q&A, ID 1099, confirms the Central Bank’s position in relation to a UCITS having a share class that makes distributions to charity. The Q&A confirms that this is permissible, subject to a number of requirements being met by the UCITS.

ID 1099

Is it possible to establish a UCITS which has a share class that makes distributions to charity? What are the obligations related to the establishment of such a share class?

Yes, provided a number of requirements are met. The UCITS must ensure that:

An investor actively elects to subscribe to such a share class (for example, opting into the share class via subscription forms) and should not be automatically invested in such a share class;

That the distributions should only be paid to a charity which is approved / authorised / registered in the relevant jurisdictions. Details of the charity and evidence of their approval / authorisation / registration status should be provided to the Central Bank when establishing the share class;

The prospectus / supplement must clearly set out:

• The implications of such a share class (i.e. that the relevant charity and not the investor which will benefit financially from distributions from the fund);
• Details of the charity to which the distributions are being made and the circumstances under which such distributions will take place; and
• That such distributions will not be paid out of the capital of the fund.

Periodic reporting to investors (for example, in the annual reports) should take place and include: o The amounts that have been distributed to charity.

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