CBI updates its position in relation to portfolio transparency for UCITS ETF

The Central Bank of Ireland (CBI) updated its UCITS Q&A to provide for its new position in relation to portfolio transparency for UCITS ETF. This is a welcome development and applies to all UCITS ETFs or UCITS with ETF share classes irrespective of whether they pursue a passive or active strategy.

Updated position

In short, the CBI has changed its position from requiring full daily portfolio transparency to now permitting disclosure of portfolio information on a periodic basis subject to certain criteria. These criteria include that:

1. There is still appropriate information disclosed daily to facilitate an effective arbitrage mechanism and that information is made available on a non-discriminatory basis to Authorised Participants and Market Makers;
2. The full portfolio holdings are disclosed publicly as at the end of each calendar quarter within 30 business-days of the end of the quarter;
3. The prospectus of the UCITS ETF discloses the type of information that is provided on a daily basis to relevant parties; and
4. There are documented procedures to address circumstances where the arbitrage mechanism becomes impaired and for investors to request portfolio information.

In more detail the updated UCITS Q&A 1012 is set out below.

Q. I am the Responsible Person of a UCITS ETF or UCITS ETF Share Class of a UCITS. What requirements apply to portfolio transparency and disclosure of information on the portfolio?

A. Regulation 85(3) of the Central Bank UCITS Regulations requires that the prospectus, PRIIPs KID and/or UCITS KIID and marketing communications of a UCITS ETF or UCITS ETF Share Class of a UCITS disclose the policy regarding portfolio transparency and where information on the portfolio may be obtained. A UCITS ETF or UCITS ETF share class of a UCITS shall disclose the identities and quantities of its portfolio holdings on either a daily basis or periodic basis as follows:

a). Daily basis: Where the UCITS ETF or UCITS ETF share class of a UCITS discloses its portfolio holdings on a daily basis, the Responsible Person must ensure that:

• the prospectus discloses the type of information that will be provided in relation to the portfolio; and
• the portfolio information is made available on a non-discriminatory basis.

b). Periodic Basis: Where the UCITS ETF or UCITS ETF share class of a UCITS discloses its portfolio holdings on a periodic basis, the Responsible Person must ensure that:

• appropriate information is disclosed on a daily basis to facilitate an effective arbitrage mechanism;
• the prospectus discloses the type of information that is provided in point (i);
• this information is made available on a non-discriminatory basis to Authorised Participants and Market Makers;
• there are documented procedures to address circumstances where the arbitrage mechanism of the ETF is impaired;
• there is a documented procedure for investors to request portfolio information; and
• the portfolio holdings as at the end of each calendar quarter are disclosed publicly within 30 business-days of the end of the quarter.

Please speak with your usual contact on our Asset Management & Investment Funds  team for more detail.

Date pubilshed: 17 April 2025