Central Bank Consultation On CBI UCITS Regulations

Earlier this month, the Central Bank published a consultation paper ("CP119") in which it seeks responses from interested stakeholders to proposed amendments to the Central Bank UCITS Regulations1

The proposed amendments to the CBI UCITS Regulations include the following:

UCITS Performance Fees

Under CP119, the Central Bank has proposed converting its current guidance on performance fee calculation methodology into regulation.

In addition, the Central Bank proposes introducing a new requirement whereby a performance fee may not crystallise, nor be paid, more frequently than annually. This represents a significant change from its existing regime, under which it has previously permitted performance fees which crystallised and were paid as frequently as quarterly. The Central Bank has said that this is in order to align its practices with IOSCO Good Practice for Fees & Expenses of CIS.