Central Bank Industry Letter On Asset Valuation

On 14 December 2023, the Central Bank of Ireland (the "Central Bank") published its industry letter on asset valuation (the "Industry Letter"), following on from ESMA's final report on its 2022 common supervisory action on valuation (the "CSA")(the "ESMA Report"). Firms should consider the contents of the Industry Letter, in conjunction with the ESMA Report to determine if any action is required to be taken.

The CSA mandated the Central Bank to investigate Irish fund management companies ("Firms") as regards:

1. compliance with the asset valuation rules under the respective UCITS and AIFM Directives/Regulations;
2. adherence to valuation principles and methodologies (with a view to reflecting a true and fair view of their financial positions both under normal and stressed market conditions in line with applicable rules); and