UCITS rulebook and UCITS Q&A second edition
The Central Bank of Ireland has recently confirmed that the text of the forthcoming UCITS Rulebook will be substantially similar to the text of the draft Rulebook issued under CP77. It has also published the second edition of the UCITS Q&A.
Speaking at the recent conference of the Irish Funds Industry Association, the Director of Markets Supervision of the Central Bank of Ireland Mr. Gareth Murphy confirmed that there would be “tweaks but one should not expect significant policy changes” to the text of the final UCITS Rulebook.
The publication of the draft UCITS rulebook under CP77 signalled a change in approach by the Central Bank of Ireland to move to a more concise, rules-based framework. The aim is to eliminate duplication or paraphrasing of the UCITS Regulations and to clearly distinguish between rules and guidance. Much of the guidance will be recast as rules while other elements will be removed entirely or published separately to the Rulebook online. The outcome may therefore have some implications for your compliance approach and it has yet to be fully determined which guidance will be published separately to the UCITS Rulebook
UCITS Q&A - second edition
The updated Q&A introduces 2 new Q&A's relating to permitted markets for UCITS and investment in instruments issued or guaranteed by the Government of the People’s Republic of China (ID1009 and ID1010).
Q&A ID1009 confirmed that pending the publication of the final draft UCITS Rulebook, it would not review any submissions regarding proposed markets. In the meantime, any UCITS which wished to refer to a regulated market in its prospectus should carry out the appropriate assessments to ensure compliance with the statutory requirements.
In Q&A ID1010, the Central Bank confirmed that it would not object if a UCITS or an AIF invested 100% of its net assets in securities or instruments issued or guaranteed by the Government of the People’s Republic of China.