IRELAND: IFSRA publish Regulatory Connection Issue 8

Monday October 2 2006

IFSRA has published Regulatory Connection Issue 8. This can be found at the above link.

This edition contains a summary of the Regulator `s current work and approach to MiFID. It also contains a summary of the outcome on the recent consulation on annual management charges within CIS.

In summary, IFSRA has confirmed that the Financial Regulator will permit retail CIS to charge the annual management fee calculated based on the initial issue price, subject to the following:

* The CIS is a structured product which, through investment in financial derivative instruments, provide for a specific return (for example, a guaranteed return or an element of capital protection) based on the performance of a particular index or underlying basket of assets provides a pre-defined return to investors.

*The fee charged is a percentage of the initial issue price per share, i.e. it will be adjusted to take account of dealing activity in the CIS.

*The prospectus of the CIS will disclose the fee paying arrangement and provide a clear warning that the fee is fixed and not subject to the performance of the CIS.