IE - Irish regulations clarify location rules of fund management companies
On 27 July 2017, the Central Bank of Ireland has published the CBI UCITS (Amendment) Regulations 2017.
On 27 July 2017, the Central Bank of Ireland has published the CBI UCITS (Amendment) Regulations 2017. While many of the amendments introduced under the Amending Regulations are technical in nature or clarify existing provisions of the CBI UCITS Regulations, the Amending Regulations give legislative effect to certain of the rules set down in the Central Bank’s Guidance on Fund Management Companies which was published in December 2016 (“CP 86”).
At this time, the Central Bank issued a feedback statement in which it sets out its intentions to impose a “location rule” on fund management companies, internally managed AIF and self-managed UCITS funds (together “Management Companies”) which would require that, depending on the PRISM rating of the Management Company, at least half of its directors must be resident in the EEA and half of the managerial functions must be performed by designated persons in the EEA.
The location rule has been changed to expand the above requirements for residency in the EEA to include "or such other country as the Bank may, taking into account criteria regarding effective supervision, determine". The Central Bank will thus have more flexibility to determine that countries which are outside the EEA meet the necessary requirements.