Tuesday September 13 2016

News Source: Fund Regulation

Focus: UCITS

Type: General

Country: Ireland




On 12 September 2016, the Central Bank published a fourteenth Edition of the UCITS Q&A.

The new questions added include the following regarding accounts and umbrella cash accounts:

Umbrella UCITS

ID 1067

  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 1068

  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 1069

  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.

Accounts

ID 1070

  1. I am a UCITS management company / depositary. In accordance with Regulation 95(3) / Regulation 113(3) of the Central Bank UCITS Regulations, I am required to prepare and submit a second set of half yearly accounts. Should those accounts include notes similar to the format of the first half yearly accounts?
  2. The format of second half yearly accounts should follow that of the first half yearly accounts.

ID 1071

  1. Is a minimum capital requirement report required for the second half yearly accounts?
  2. No. Regulation 95 (in the case of a UCITS management company) and Regulation 113 (in the case of a depositary) of the Central Bank UCITS Regulations provide that a minimum capital requirement report must accompany the annual and first set of half yearly accounts only.

ID 1072

  1. Is the second set of half yearly accounts required to be filed within 2 months of the period end or can this be filed with the annual accounts within the 4 month period?
  2. As provided for in Regulations 95 and 113 of the Central Bank UCITS Regulations, half yearly accounts must be submitted within two months of the period end.

Click on the above link for further details.