Thursday November 23 2017

News Source: Fund Regulation

Focus: UCITS

Type: General

Country: Ireland




The Central Bank of Ireland has updated its Q&A (UCITS ID 1015 and AIFMD ID 1094) relating to the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programmes (“Stock Connect”).

The Q&A’s were updated to coincide with the roll-out of a real-time delivery versus payment (“RDVP”) settlement system under Stock Connect, which has been approved by the Securities and Futures Commission of Hong Kong (“SFC”) and officially went live on the 21st November. Therefore the new Q &A’s outline how RDVP is to be carried out for UCITs and AIFMD Eligible Funds.

The introduction of RDVP under Stock Connect aims to address counterparty risk exposure. RDVP will be used in conjunction with Special Segregated Accounts (“SPSAs”), which were introduced in April 2015 under an earlier operational enhancement.

It is intended that the use of RDVP together with SPSAs will facilitate a move from an integrated to a multi-broker model, subject to the depositary being satisfied that it can meet its safekeeping obligations under such arrangements.

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