LATEST CBI UPDATES PAVING THE WAY FOR IRELAND TO BECOME A BEST-IN-CLASS HOME FOR PRIVATE FUNDS
As the Global Private Fund Industry anticipates the Irish ILP Act there were two very significant releases from the Central Bank of Ireland today which pave the way for Ireland to become a best-in-class home for Private Funds:
- Early in the day the CBI issued a consultation on the share class features of closed-ended QIAIFs. This consultation will close on 22 December, 2020 – https://www.centralbank.ie/publication/consultation-papers/consultation-paper-detail/cp132—guidance-on-share-class-features-of-closed-ended-qiaifs
- Later in the day the CBI issued an updated AIFMD Q&A which removes the requirement of a GP to an Irish fund being approved as an AIFM and removes the requirement that the GP maintain €125,000 minimum regulatory capital – https://www.centralbank.ie/docs/default-source/regulation/industry-market-sectors/funds/aifs/guidance/qa/aifmd-qa-36-edition.pdf?sfvrsn=2
Potential for significant regulatory burden and capitalization requirements being imposed on the GP were a big concern for the Irish Private Fund industry prior to today. The CBI appears to have got it right with the recognition that the General Partner of an ILP has functions imposed by Statute relating to its authority to conduct the business of the ILP, and will be required to comply with the CBI Fitness & Probity regime. The Q&A recognizes that the General Partner appoints the AIFM to the QIAIF and also acts in an oversight capacity, but does not, itself, need to be regulated as an AIFM.
Roll on 2021!
If you have any questions or would like to find out how DMS can assist you with your European fund needs, please reach out to your usual representative or contact Dan Forbes from our client solutions team.