Central Bank of Ireland publishes Markets Update with preparations for Brexit at the forefront

On 04 February 2019, the Central Bank of Ireland published a Markets Update, providing information on (among other things) a number of issues to help the Irish funds industry prepare for Brexit.

Introduction

On 04 February 2019, the Central Bank of Ireland (Central Bank) published its Markets Update (Issue 2, 2019).

The Update includes articles which:

  1. Confirm that ESMA and the various securities regulators of the EU Member States have agreed Memoranda of Understanding with the UK’s FCA, as part of preparations for the possibility of no withdrawal agreement having been reached by the time the UK leaves the EU (a no deal Brexit).

  2. Set out a notice of intention in relation to location requirements for directors and designated persons of Irish Fund Management Companies.

    The notice of intention notes that in the event of a hard Brexit, the Central Bank will consider whether the UK is a country to be determined as meeting the Effective Supervision Requirement set out in the Annex to the notice of intention.

    Pending consideration of this point, the Central Bank does not propose to adopt a default position which would treat the UK as not satisfying the Effective Supervision Requirement.

    Following consideration, the Central Bank will determine whether the UK, as a country, continues to satisfy the Effective Supervisory Requirement - the Central Bank will confirm same by publishing a notice on its website. Note that this determination may be changed (for example, if circumstances change).

  3. Note that the Central Bank has updated its AIFMD Q&A Document.

    The 31st edition of the document includes a new Q&A ID 1129, which clarifies that a Qualifying Investor Alternative Investment Fund (QIAIF) will be permitted to designate a UK AIFM as its AIFM.

    QIAIFs migrating to such an arrangement need to assess the impacts arising from the loss of the marketing passport under AIFMD including notification to investors, amendments to documentation, filings with the Central Bank or other supervisory authorities and any other operational issues.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.