Undertakings in Collective Investments and Transferable Securities ("UCITS")

(i) Central Bank issues revised UCITS Q&As

During the period 1 October 2017 to 31 December 2017, the Central Bank published the Twentieth and the Twenty-First Edition of the Central Bank UCITS Question & Answers ("Q&A").The updates to the Q&As comprise:

Q&A ID 1085 confirms that any Irish fund which is managed by a non-Irish fund management company must now create a designated email address which should be monitored for regulatory correspondence. The Q&A also confirms that an individual email address can be set up for each Irish fund or alternatively a single email address for all Irish UCITS managed by the non-Irish fund management company can be used. The deadline for submitting details of the relevant email address was10 November 2017 and should be submitted via CP86email@centralbank.ie; and

Q&A ID 1015 concerns the regulatory considerations around Irish authorised UCITS acquiring Chinese shares through the Shanghai-Hong Kong stock Connect and Shenzhen-Hong Kong Stock Connect.

A copy of the Twenty-First Edition Q&A can be found here.

(ii) ESMA updates Q&A on application of UCITS Directive

On 5 October 2017, the European Securities and Markets Authority ("ESMA") published an updated Questions & Answers document ("Q&A") on the application of Directive 2009/65/ EC, as amended (the "UCITS Directive"). The updates comprise:

  • Q&A No 2: This concerns the reporting of data items in Section A of the Annex of Regulation (EU) 2015/2365 on reporting and transparency of securities financing transactions ("SFTR") in the annual and half-yearly reports of a UCITS.

A copy of the revised Q&A can be found here.

An accompanying press release can be found here.

Alternative Investment Fund Management Directive ("AIFMD")

(i) Central Bank issues revised AIFMD Q&A

During the period 1 October 2017 to 31 December 2017, the Central Bank published the Twenty-Sixth Edition and the Twenty-Seventh Edition of the Central Bank UCITS Question & Answers ("Q&A") on the application of Directive 2011/61/EU ("AIFMD Directive"). The updates to the Q&As comprise:

  • Q&A ID 1124 confirms that an Irish authorised AIF managed by a non-Irish fund management company must maintain a designated email address for regulatory correspondence in respect of Irish authorised AIFs. This email address should be monitored for regulatory correspondence. It confirms that individual email addresses can be set up for each Irish authorised AIF or a single email address for all Irish authorised AIFs under management by the non-Irish fund management company. The deadline for submitting details of the relevant email address was 10 November 2017 and should be submitted via CP86email@centralbank.ie ; and
  • Q&A ID 1094 concerns the regulatory considerations around Irish authorised AIF seeking to acquire Chinese shares through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.

A copy of the Twenty-Seventh Edition Q&A can be found here.

(ii) ESMA updates Q&A on application of AIFMD Directive

On 5 October 2017, ESMA published an updated Questions and Answers on the application of the AIFMD ("Q&A"). The updates comprise:

  • Section I (Remuneration) Question 6: This concerns the remuneration-related disclosure requirements under Article 22(2)(e) of the AIFMD;
  • Section I (Remuneration) Question 7: This concerns the inclusion of the information prescribed by Article 22(2)(e) and (f) of the AIFMD in the annual reports; and
  • Section XIII (Impact of SFTR) Question 2: This concerns the reporting of data items in Section A of the Annex of Regulation (EU) 2015/2365 on reporting and transparency of securities financing transactions ("SFTR") in the annual reports of the AIF.

A copy of the updates Q&A can be found here.

An accompanying press release can be found here.

European Venture Capital Funds ("EuVECA") & European Social Entrepreneurship Funds ("EuSEF")

(i) Regulation amending EuVECA and EuSEF Regulations published in the Official Journal

Regulation (EU) 2017/1991 amending: (i) the European Venture Capital Funds Regulation (Regulation 345/2013) (the "EuVECA Regulation") and (ii) the European Social Entrepreneurship Funds Regulation (Regulation 346/2013) (the "EuSEF Regulation") (the "Amending Regulation") was published on 10 November 2017 in the Official Journal of the European Union (the "OJ").

Amongst other changes, the Amending Regulation amends the existing EuVECA Regulation and the EuSEF Regulation by:

  • Opening up the use of the EuVECA and EuSEF to all managers authorised under the AIFMD Directive. This means that larger managers with assets under management of more than EUR 500 million will also be able to set up and manage EuVECA and EuSEF funds;
  • Setting up a publicly accessible central database on EuVECA/EuSEF funds and all qualified managers managed by ESMA;
  • Extending the class of EuVECA eligible assets to allow investment in small mid-caps (i.e. unlisted undertakings that employ up to 499 employees) and small and medium- sized enterprises" listed on an SME growth market;
  • Decreasing costs by explicitly prohibiting fees imposed by competent authorities of host Member States where no supervisory activity is performed; and
  • Simplifying the registration process and setting the minimum capital necessary to become a manager.

The Amending Regulation applies from 1 March 2018.

A copy of the Amending Regulation can be found here.

To read this Update in full, please click here.

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