Tuesday September 13 2016

News Source: Fund Regulation

Focus: AIFMD

Type: General

Country: Ireland




On 12 September 2016, the Central Bank published a twentieth edition of the AIFMD Q&A. The new questions added are: ID1108 – ID 1110 (Umbrella cash accounts).

ID 1108

  1. Does the Central Bank’s guidance on ‘Umbrella funds – cash accounts holding subscription, redemption and dividend monies’ apply to a segregated account established by an umbrella fund in respect of a sub-fund?
  2. No. As stated in the Central Bank’s guidance on ‘Umbrella funds – cash accounts holding subscription, redemption and dividend monies’, an umbrella cash account is an account at the level of the umbrella fund. If a cash account is established as a segregated account in respect of a particular sub-fund of the umbrella fund, the Central Bank’s guidance ‘Umbrella funds – cash accounts holding subscription, redemption and dividend monies’, does not apply.

ID 1109

  1. Is it possible for an umbrella fund to establish more than one umbrella cash account?
  2. The Central Bank has no objection to the establishment of multiple cash accounts by or on behalf of an umbrella fund provided each such umbrella cash account complies with the Central Bank’s guidance ‘Umbrella funds – cash accounts holding subscription, redemption and dividend monies’.

ID 1110

  1. May an umbrella cash account be operated for one or more umbrella funds (i.e. so that a number of sub-funds from different umbrella funds utilise the same umbrella cash account)?
  2. No. It is only permissible to open an umbrella cash account for a single umbrella fund and only the sub-funds of a single umbrella fund may utilise that account. It is possible to open more than one umbrella cash account for a single umbrella fund.

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