1. APPROACHING DEADLINES

Approaching deadlines

 

 

 

Q1 2022

31 January 2022 (Approx.)

UCITS, ManCos and AIFMs are required to submit their annual PCF Confirmation Return for the year ended 31 December 2021 to the Central Bank. It is anticipated that the deadline will be on or around 31 January 2022, but this is not yet confirmed.

31 January 2022

Deadline for UCITS ManCos and AIFMs to file their annual ownership confirmation.

1 February 2022

The new cash penalties regime under the CSDR come into force. See Section 12.6.

2 February 2022

UCITS ManCos and AIFMs (which will include self-managed UCITS and internally managed AIFs) to comply with ESMA's Guidelines on marketing communications by 2 February 2022. See Section 4.1.

22 February 2022

Deadline for UCITS to file its annually updated KIID.

28 February 2022 (Approx.)

Investment funds will need to submit their annual PCF Confirmation Return for the year ended 31 December 2021 to the Central Bank. It is anticipated that the deadline will be on or around 28 February 2022, but this is not yet confirmed.

28 February 2022

Deadline for Irish authorised sub-funds to submit their annual Central Bank Fund Profile Return.

Q2 2022

31 March 2022 (Approx.)

Deadline for all Irish authorised MiFID firms & credit institutions providing portfolio management and advisory services to conduct a review of individual sales practices and suitability arrangements under MiFID II. See Section 7.3.

Q3 2022

1 July 2022

Each QIAIF or RIAIF which currently publishes a PRIIPS KID on the basis that the fund is marketed to EEA retail investors will be required to update that PRIIPS KIID to comply with the Revised Level 2 Measures and publish the revised PRIIPS KID from 1 July this year. See Section 5.3.

8 July 2022

Deadline for managers of Irish domiciled UCITS to ensure internal investment processes are updated as per the specific criteria set down in the Covered Bonds Directive. See Section 2.3.

2. UCITS & AIFMD

2.1 Central Bank updates Q&As on application of AIFMD

On 1 October 2021, the Central Bank of Ireland (Central Bank) published the 42nd edition of its publication entitled "AIFMD Questions and Answers" (Q&As) on the application of Directive 2011/61/EU (Alternative Investment Fund Managers Directive or AIFMD). The new Q&As clarify the current position for qualifying investor alternative investment funds (QIAIFs) intending to invest more than 50% of net assets and for retail investor alternative investment funds (RIAIFs) intending to invest more than 30% of net assets in a UK domiciled fund (including UK UCITS).

The Central Bank has confirmed that it is currently considering whether an Irish QIAIF can invest more than 50% of net assets in a UK domiciled fund and notes that for the period while it is under consideration, it will not treat UK alternative investment funds (AIFs), which will include UK undertakings for collective investment in transferable securities (UCITS), as "ineligible" for such purposes. It does, however, confirm that UK AIFs must be "treated in the manner of a category 2 investment fund" as detailed in the Central Bank's AIF Rulebook during this period.

In addition, the Central Bank has confirmed that it is considering whether an Irish RIAIF can invest more than 30% of net assets in a UK domiciled fund. Equivalent to the position adopted for QIAIFs, during this period RIAIFs must treat such a fund as a "category 2 investment fund" for the purposes of the requirements set down in the Central Bank's AIF Rulebook.

A copy of the revised AIFMD Q&A can be accessed here.

A copy of the Central Bank's AIF Rulebook can be accessed here.

On 29 October 2021, the Central Bank published the 43rd edition of its publication entitled "AIFMD Questions and Answers" on the application of AIFMD. The new Q&As update the Central Bank's list of the types of non-financial instrument asset classes which may be safe-kept by a depositaries of assets other than financial instruments (DAoFI). This list of permissible non-financial asset classes has been updated to now include aircrafts.

A copy of the revised AIFMD Q&A can be accessed here.

On 20 December 2021, the Central Bank published the 44th edition of its publication entitled "AIFMD Questions and Answers" on the application of AIFMD. The new Q&As set down the Central Bank's expectations in respect of any arrangement involving a nondiscretionary investment advisor which provides services to an Irish QIAIF.

The Central Bank notes that in the case of private equity QIAIFs or other QIAIFs which invest in illiquid assets, such a non-discretionary investment advisor may provide a range of services to the alternative investment fund manager (AIFM) in respect of such QIAIFs not typically provided for in other investment strategies. In such circumstances, the Central Bank expects the prospectus of the QIAIF to incorporate appropriate disclosures on the fees paid to the investment advisor and the services being provided by the non-discretionary investment advisor to provide context for the fees which that entity receives out of the assets of the QIAIF.

The Central Bank confirms that it expects any such non-discretionary investment advisor to only perform a role that is advisory in nature. It also expects that the AIFM of the QIAIF should be able to demonstrate this to be the case when requested by the Central Bank.

The news Q&As additionally confirm that existing multi-manager RIAIFs have until 1 January 2023 to adapt their performance fee methodologies to ensure that no performance fee is payable to an investment manager in respect of the portion of the portfolio managed by that investment manager in respect of which there has been outperformance in circumstances where there is a global underperformance of the relevant fund.

All multi-manager RIAIFs established after 20 December 2021 must comply with this requirement from date of authorisation/approval by the Central Bank.

A copy of the revised AIFMD Q&A can be accessed here.

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