IRELAND: Irish Financial Regulator Publishes Policy Update on CIS

Monday September 6 2010

The Irish Financial Regulator has published Policy update 03/10 in relation to:

* Charging fees and expenses to capital in fixed income funds and the Names of sub-funds within umbrella funds.

* Charging Expenses to Capital in fixed income funds

With the exception of open-ended retail distributing investment funds which invest predominantly in debt markets, Irish collective investment schemes are permitted to charge fees and expenses to capital subject to certain requirements.

The Financial Regulator has now revised its policy from 1 September 2010 to allow all funds to charge fees and expenses to capital subject to certain requirements, and with certain additional disclosure requirementsin the case of retail fixed income funds.

Names of sub-funds within Umbrella Funds

Currently, it is not permitted to refer solely to the name of an investment manager in the name of a CIS or in the name of a sub-fund within an umbrella ; the name of the promoter must also be disclosed. The Financial Regulator has revised its policy in this regard and as from 1 September 2010, the sole name of an investment manager will be permitted in the title of a sub-fund where:

* The name of the Umbrella Fund contains the name of the promoter; or

* The name of the Umbrella Fund contains the brand name of the promoter.

* In both cases, where a supplement to the prospectus is published in respect of the sub-fund, the name of the promoter must be stated clearly on the supplement cover.