Irish Funds, the representative body for the cross-border investment funds industry in Ireland, has today welcomed the publication of new Regulations for Undertakings for Collective Investment in Transferable Securities (UCITS) by the Central Bank of Ireland (CBI).
Once implemented, the Regulations will simplify the existing regime for clients of the jurisdiction. The new legislation from the CBI intends to consolidate all of the conditions imposed on UCITS, their management companies and depositaries into a single document, and is the conclusion of the Central Bank’s Consultation CP 77 which was initially published in January 2014. In addition, the publication of the Regulations removes the requirement for promoters of UCITS funds to be approved by the CBI and brings the approach for UCITS funds in line with that for Alternative Investment Funds (AIFs).
Pat Lardner, CEO at Irish Funds, says: “This is a positive development for the Irish funds industry, and the removal of the promoter approval will ensure the regulatory framework is accessible to the broadest range of managers/promoters. In addition, the consolidation of rules into one document should simplify things for both existing funds and those looking to launch new funds. We are optimistic about the role this legislation will play in the UCITS market, and look forward to engaging with this new rule making process.”
Irish Funds has highlighted a number of positives for its members within the new Regulations, in particular the removal of an existing requirement for promoters of UCITS funds to be approved by the CBI. This was seen as a deterrent to smaller managers and will make the jurisdiction more attractive and accessible to start-up fund managers.