IRELAND: IFSRA Updates Guidance Notes – mergers of Irish CIS

Monday November 20 2006

In November 2006, following consultation with industry and the Consumer and Industry Consultative Panels, the Financial Regulator revised the provisions of Guidance Note 1/03 on the amalgamation of Irish collective investment schemes (CIS) with other CIS. The Guidance Note provides guidance in respect of mergers of Irish CIS, by way of a scheme of amalgamation, with other Irish CIS, or with CIS domiciled in other jurisdictions. In particular the Guidance Note set detailed rules concerning the voting rights of shareholders approving these arrangements.

The Financial Regulator has amended this Guidance Note to consider derogations from the voting requirements in the case of a merger involving two Irish CIS, where both CIS have similar investment objectives/policies and risk profile.