The Front Page, Asset Management & Investment Funds: Irish Practice Developments

Capital Markets Union

The Irish Funds Industry Association (IFIA) responded to a consultation from the Department of Finance on the European Commission’s Green Paper on Capital Markets Union (CMU) (detailed in the March Front Page). IFIA welcomed the CMU initiative as a significant opportunity and highlighted the need to position Ireland as an enabler and facilitator of CMU. As a major investment fund domicile and fund servicing centre, Ireland can play a key role in the development and promotion of investment fund solutions to address the objectives of CMU. Product priorities for the Irish funds industry include:

  • The development of a “best-in-class” Irish framework for private equity and venture capital.
     
  • A revised Loan Originating QIAIF structure which is aligned with the objectives of CMU and fits within a harmonised EU framework for loan origination.
     
  • A review of the Central Bank’s “registered AIFM” regime applicable to QIAIFs to make it more proportionate for smaller and start-up managers.
     
  • The promotion of European Long Term Investment Funds (ELTIFs).
     
  • The preservation of a vibrant money market fund sector.
     
  • Enhancements to the Irish REIT structure to internationalise its offering.

IFIA also provided recommendations on the following areas as important considerations in developing a workable CMU:

  • EU level harmonisation and the avoidance of gold-plating at both the EU and domestic levels.
     
  • Ensuring policy initiatives within the European Commission and across the various European Supervisory Authorities and the ESRB are aligned.
     
  • Development of cross-border funds and reduction of costs.
     
  • Open architecture and a global framework.
     
  • Reporting harmonisation and the need for efficiencies

Proposed actions at the European and the domestic level in preparation for CMU are set out in the submission. Please speak with your usual contact in the A&L Goodbody Asset Management & Investment Funds team if you would like a copy of the submission.

ISE

A new process for submitting the net asset values (NAV) for listed investment funds will be implemented by the Irish Stock Exchange (ISE) in September 2015. Currently NAVs are submitted by email to nav@ise.ie or autonav@ise.ie. All funds listed on the Main Securities Market of the ISE must submit a NAV per class in accordance with the Code of Listing Requirements and Procedures for Investment Funds (the Code).  The NAV must be submitted upon calculation in accordance with the listing rules. The new enhanced service will be operated securely, and on a timely basis, enabling efficient filing, real time intraday detail updates, straight through processing and publication to market.  This will ensure fund issuers can continue to comply with their regulatory and transparency obligations under relevant EU securities legislation and ISE Listing Rules.

Connected Party Transactions

The IFIA published a Guidance Paper on Connected Party Transactions which was drafted in order to assist depositaries in discharging their regulatory obligations. Please speak with your usual contact in the A&L Goodbody Asset Management & Investment Funds team if you would like a copy of the Guidance Paper.

For more information please contact Nollaig Greene or a member of the Asset Management & Investment Funds Team.

Date published: 30 April 2015