CBI released it’s Feedback Statement on CP 105 – Consultation

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CBI releases it’s Feedback Statement on CP 105 – Consultation

CP 105 – Consultation ( the “Feedback Statement” ) regards amendments to the Central Bank of Ireland UCITS Regulations ("CBI UCITS Regulation").

Overview of CP 105 -Consultation

On the 19th of January 2016 the CBI released it’s Feedback Statement on CP 105 – Consultation ( the “Feedback Statement” ) on amendments to the CBI UCITS Regulations.
The Feedback Statement is part of the CBI’s “policy formation process”. In June 2016 the CBI issued Consultation Paper 105 and requested feedback from stakeholders the implementation of UCITS V. Consultation Paper 105 requested feedback on proposed technical changes and amendments to the CBI UCITS Regulations including typographical errors.

The Feedback Statement sets out the responses received and the expected changes the CBI intends to make to the CBI UCITS Regulations. The CBI indicates that the amended UCITS Regulations should issue in the first quarter of 2017.

Intended Changes to the CBI UCITS Regulations

  1. The CBI will issue website guidance on making an application to the CBI for approval to establish a subsidiary. 
  2. As part of the disclosures required in a UCITS Annual Report the CBI will require that the annual report discloses the names of subsidiaries of the UCITS. 
  3. Regulation 11 will be amended to clarify that it refers to cash booked in accounts at credit institution’s for “ancillary liquidity purposes rather than deposits as investments”. Regulation 7 sets out the provisions concerning deposits as investments. 
  4. The CBI will issue a Q&A to clarify that “valuation of a particular asset type of a UCITS may be mandated by legislative requirements other than those in the Central Bank UCITS Regulations.”
  5. Regulation 53 (2) (b) will provide more flexibility in providing a disclosure for long and short positions. Disclosures will be allowed on the basis of the “anticipated maximum percentage or anticipated ratio of long positions to short positions".
     

Note in relation to Annual / Half – Yearly Reports

  • In relation to the timeframe for the publication of Annual and Half Yearly reports – the reference to “within two working days” in Regulation 88 will be removed.
  • A new provision will be included in the CBI UCITS Regulations

    “incorporating the proposed option to present either a full portfolio statement listing each open financial derivative position or a condensed portfolio statement listing open positions representing 5% or more of assets".

    However, where a condensed portfolio statement is provided the Central Bank considers that the introduction of an additional leverage metric could improve disclosure in terms of making it more informative. The leverage metric should be consistent with the leverage measure as used by the UCITS (i.e. sum-of-the-notionals or commitment methodologies) per its Risk-Management-Process. However, for the purposes of the condensed portfolio statement the leverage is to be analysed (delineated) within each of the following headings: each derivative type, each derivative type by currency and maturity, each derivative type by industry sector and each derivative type by geographic region.”
Note in relation to Annual / Half – Yearly Reports
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