Central Bank publishes twenty-third edition of UCITS Q&A

The Central Bank published the 23rd Edition of the Central Bank UCITS Q&A on 5 July 2018. A new question, ID 1002, in relation to UCITS investing in non-UCITS investment funds and provisions to be included in constitutional documents in such circumstances has been answered.

Read: The updated UCITS Q&A

New Irish law ISDA master agreement published

The International Swaps and Derivatives Association (ISDA) published a new Irish Law version of the widely used 2002 ISDA Master Agreement on 28 June 2018, in a Brexit prompted update for the European OTC Derivatives market. The publication indicates expectations of a possible preference for the use of the law of an EU member state in ISDAs between European counterparties post Brexit, rather than the currently prevalent English law-governed ISDA Master Agreement. However, as with much of the impact of Brexit, the extent of movement remains to be seen.  

Read: The Irish law Master Agreements is available from the ISDA Bookstore

Central Bank fund management companies guidance

The Central Bank published its markets update on 5 July 2018, which included guidance on the newly introduced CP86 organizational effectiveness role. Specific emphasis will be placed on assessing the appropriateness of the Fund Management Company’s resources and organizational structure. Through supervisory engagements with relevant firms, the Central Bank will focus on the assessment work performed by the organizational effectiveness role holder and, in particular, how the board of the Fund Management Company have implemented any proposals to improve organizational effectiveness.

Read: Central Bank Fund Management Companies Guidance – 5 July 2018

New form for submission of Irish fund financial statements

The Companies Registration Office in Ireland, published form FS1, the accompanying form for the financial statements submission requirement on 10 July 2018, which applies to certain investment companies as introduced by the Companies (Accounting) Act 2017. This new requirement relates to investment companies established as public limited companies (PLCs) and Undertakings for Collective Investment in Transferable Securities (UCITS) constituted as investment companies that are registered as PLCs in Ireland only and does not concern Irish Collective Asset-management Vehicles (ICAVs).

A company with a financial year-end of 31 December 2017 will be required to make the filing on or before 30 November 2018. 

Read: Dechert ONPOINT relating to Form FS1 for further information

New AML bill published

The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2018 (the “AML Bill 2018”) was published on 30 April 2018. The primary purpose of the AML Bill 2018 is to transpose, in part, the Fourth EU Money Laundering Directive (2015/849) into national law, and to give effect to the recommendations of the Financial Action Task Force. 

The core provisions of the AML Bill 2018 relate to customer due diligence (verifying a customer's identity and assessing risk). They oblige designated persons to carry out a business-wide risk assessment, as well as an individual assessment in relation to each business relationship. 

Read: The AML Bill 2018 (as passed by Dáil Éireann on 5 July 2018)

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