IRELAND: Central Bank updates its AIFMD Q&A

Tuesday December 20 2016

The Central Bank of Ireland (CBI) has published the twenty-second edition of its AIFMD Q&A. Changes to the previous version include an update to existing question ID 1094 and the addition of new questions from ID 1112 to ID 1116.

ID 1094

This question concerns regulatory considerations around Irish authorised AIFs seeking to acquire Chinese shares through the China-Hong Kong Stock Connect trading route (‘Stock-Connect infrastructure’). It has been updated to reflect the recent launch of Shenzhen-Hong Kong Stock Connect on 5^th December 2016.

ID 1112

Question: I am an existing QIF with a wholly owned Irish subsidiary that is converting to a private company limited by shares (‘CLS’) under the Companies Act 2014. Section 8.3.1 of the NU application form provides that my “subsidiary must have an objects clause which reflects the investment objective of the Irish authorised scheme”. How should I now comply with this requirement given that, in accordance with the Companies Act 2014, CLS do not have an objects clause?

Answer: As a CLS cannot have an objects clause, the new constitutional document of the subsidiary should state that the subsidiary will be run in a manner which reflects the investment objective and policy of the QIF.

ID 1113

Question: I am an authorised external AIFM or an authorised internally managed AIF. What transitional arrangements (if any) apply in relation to (i) the managerial functions listed in the AIF Rulebook, Chapter 3, iii, 2; (ii) new requirements in relation to an effective supervision requirement and the retrievability of records; and (iii) adherence to the fund management company guidance chapters 1-6?

The CBI has added a detailed table detailing the various AIF provisions and the associated transition dates in the fund management company guidance, published on 19^th December 2016. This table can be viewed in its entirety by clicking on the link at the top of the page.

ID 1114

Question: I am an existing AIFM or an authorised internally managed AIF that is availing of the transitional period per ID 1113. Can I make changes to my organisational structure during the transitional period?

Answer: Yes. You can make changes to your organisational structure during the transitional period but only changes which bring you closer to compliance with the final CP86 rules and guidance.

ID 1115

Question: I am an authorised AIFM or an internally managed AIF and I want to amend my programme of activity (POA). Do I need to submit a draft POA to the Central Bank so that it can review and approve those changes in advance?

Answer: The POA must be kept up to date but there is no need to submit changes to the POA to the Central Bank for review or approval. The POA must be provided on request to the Central Bank. Where you propose to engage in any significant new activities, you must consult with the Central Bank in advance in accordance with Regulation 11 of the AIFM Regulations 2013.

ID 1116

Question: I am an umbrella ICAV. Are my sub-funds permitted to have separate auditors?

Answer: No. The Central Bank does not permit sub-funds within umbrella funds, including ICAVs to have separate auditors.

Click on the above link to view the updated Q&A document.