Monday June 10 2019

News Source: Fund Regulation

Focus: UCITS

Type: General

Country: Ireland

On 6th June 2019, the Central Bank of Ireland, issued its 26th edition of the Central Bank UCITS Q&A, the updated Q&A had new Question IDs 1090, 1091,1092 and 1093 in relation to the newly published Central Bank UCITS Regulations 2019.

Existing Q&As related to the Central Bank of Ireland, UCITS Regulations have been amended to update the references to relevant Regulations.

Fees and charges

Question ID 1090

Where a UCITS will have performance fees as permitted by Regulation 40 of the Central Bank UCITS Regulations, is it required to charge such fees on an individual investor basis?

No. It is acceptable to charge performance fees at (i) an individual investor level or (ii) at a share class / fund level, as adjusted for subscriptions and redemptions.

Question ID 1091

Can a UCITS crystallise and pay a performance fee upon the redemption of its shares/units by an investor?

Yes. The crystallisation and payment of a performance fee by a UCITS upon the redemption of shares/units by an investor is not considered to be an annual calculation for the purposes of Regulation 40(4) of the Central Bank UCITS Regulations.

Central Bank (UCITS) Regulations – Transitional arrangements

Question ID 1092

What limits apply to deposits or cash booked in accounts and held as ancillary liquidity, in accordance with Regulation 7(2) of the Central Bank UCITS Regulations?

Exposure to credit institutions arising from cash held as ancillary liquidity are included in the individual and group limits for deposits provided for by Regulation 70 of the UCITS Regulations. The limits apply irrespective of whether the accounts are held for investment or ancillary liquidity purposes.

Question ID 1093

Regulation 47 of the Central Bank UCITS Regulations requires that each UCITS authorised by the Central Bank establishes and maintains an email address for correspondence with the Central Bank. In the case of umbrella UCITS, does this requirement apply at umbrella or sub-fund level?

Regulation 47 of the Central Bank UCITS Regulations applies at umbrella level.

Click on the above link for further information.