Collective Investment Schemes As UCITS Eligible Assets

Investment by UCITS in other collective investment schemes ("CIS") is a matter that has recently received attention both domestically and from Europe.

On 5 July 2018, the Central Bank of Ireland (the "Central Bank") issued a new version of its UCITS Q&A document with a revised Q&A ID1002 on Irish UCITS investment in non-UCITS funds.

Irish UCITS investment in CIS is governed by requirements set out in the Irish UCITS Regulations and the Central Bank UCITS Regulations. The requirements are supported by applicable Q&A issued by the Central Bank. The update to the requirements for UCITS investing in nonUCITS funds was issued via the revised Central Bank Q&A which clarified that "where a UCITS invests in a non-UCITS fund, the constitutional document of the non-UCITS must include a prohibition on investing more than 10% in other investment funds; and that the non-UCITS must be subject to requirements in its jurisdiction of domicile which are equivalent to certain UCITS