The Central Bank of Ireland has released a public consultation proposing what the Irish Fund Industry Association (IFIA) describes as “significant enhancements” to its non-Ucits regime.
One aspect of the proposal will be to replace the current Qualifying Investor Fund regime with a new Qualifying Investor Alternative Investment Fund (QIAIF) regime, while, for retail investors in non-Ucits products, a separate Retail Investor Alternative Investment Fund (RIAIF) regime will be created.
The new QIAIF regime will also include some of the following changes:
- Removal of the long-standing promoter regime (which includes the related promoter approval and capital requirements)
- Removal of specific additional Prime Broker and Counterparty credit rating requirements
- Provision for the fair as opposed to equal treatment of investors in different share classes
- Provision for exclude and excuse share classes
Furthermore, all existing non-Ucits guidance notes, non-Ucits notices and policy documents issued by the Central Bank of Ireland will be replaced by a new single handbook covering all aspects of regulation for AIFMs, QIAIFs, RIAIFs, depositary and administrator requirements.
The IFIA, which released a statement on the consultation, said the changes “will result in a more efficient and streamlined regulatory environment for all types of alternative investment funds in Ireland”.
The fund industry is big business in Ireland and, as a mark of its importance to the economy, An Taoiseach Enda Kenny spoke at the IFIA’s most recent annual global conference. As reported, Kenny pledged his support for the industry and promised the government would do all it can to help a smooth transition to the post-AIFMD regime.
Speaking about the consultation, IFIA chief executive Pat Lardner said: “The fundamental changes set out by the Central Bank of Ireland today will further strengthen Ireland’s attractiveness to international managers, building upon the successes to date as we move towards the implementation of the AIFMD.”
