This move will enable Irish authorised alternative investment fund managers to use the Alternative Investment Fund Managers’ Directive (AIFMD) passport from 22 July this year.
The publication of the AIF Rulebook, application forms and Q&A ahead of the AIFMD implementation date by the Central Bank is a welcome development, according to Matheson, the Irish law firm.
In a statement, Matheson commented that “the path is now clear for authorisation of Irish AIFMs enabling them to avail of a full European passport at the earliest possible opportunity. The Central Bank has also provided much needed clarity to other AIFMs who wish to avail of the transitional period afforded by the AIFMD”.
Some of the key points highlighted by Matheson in relation to the Central Bank of Ireland’s decision to accept applications ahead of the July implementation date for AIFMD include:
- An existing EU AIFM must submit an application for authorisation within one year. During that one-year transitional period, AIFMs are expected to comply on a best efforts basis with the AIFMD as implemented by national law. The pre-existing Irish rules will continue to apply to the AIF until the AIFM is authorised.
- Existing umbrella qualifying investor funds (“QIFs”) can continue to launch new sub-funds during the transitional period and such sub-funds can operate under the existing rules until the AIFM is authorised. An existing EU AIFM can establish a new AIF during the transitional period and the AIF Rulebook will apply to such AIFs, with the exception of the AIFMD depositary liability regime, which will not apply to these new AIFs during the transitional period.
- An AIFM which is subject to the transitional arrangements may delegate portfolio and risk management to a third country entity notwithstanding there are no co-operation agreements in place between the Central Bank and the third country regulator.
To read about how the implementation of the Alternative Investment Fund Managers Directive (AIFMD) should give advisers greater faith in the robustness of alternative funds, click here.
To read about the European Commission publishing the final text of how the long-debated Alternative Investment Fund Managers’ Directive (AIFMD) is to be implemented, click here.
