IRELAND: Irish Regulator Publishes Regulatory Connection 15

Tuesday November 25 2008

The Irish Regulator has published Issue 15 of its Regulatory Connection publication. This can be found at the above link.

Noted in this update was the signing of the Memoranda of Understanding (MOU) between the financial Regulator and Chinese regulatory authorities aiming to formalise the relationship and co-operation between the two jurisdictions whilst allowing Chinese investors to invest in Irish domiciled funds through the Chinese QDII regime.”

An additional MOU has been signed by authorities through out Europe. Again this aims for increased cooperation on issues that may arise, for example on a cross-border basis in the EU.

Also noted is a clarification by the regulator on the use of Value at Risk (VaR) in UCITS. The UCITS Guidance note now shows the limit for VaR is now 20% with a 99% confidence level and a holding period of 20 days.

In the EU, CESR has intensified its efforts to address the financial crisis by for example coordinating national efforts on short selling, monitoring the application of accounting standards, and monitoring the impact of recent market events on the functioning of investment funds.

Other relevant information includes the provision of advice from CESR to the Commission regarding the UCITS management passport on 1st November 2008.

Adoption of the overall proposal by the commission is scheduled for 2009.