Distribution Focus

CBI update on application of New EU fund distribution rules

Further to the recent adoption of the Regulation on Cross-Border Fund Distribution and issuance of ESMA Guidelines on marketing communications pursuant to this (the “Guidelines”), the Central Bank has published a notice of intention (the “Notice”).

The Notice provides that the Central Bank expects full compliance with the Guidelines in line with the relevant application date of 2 February 2022.The Central Bank further intends to incorporate provisions from this into both the Central Bank UCITS Regulations and AIF Rulebook confirming that compliance with the Guidelines is required. It intends to consult with industry on this process.

It can also be noted that the AIFM Q&As have been updated to specifically address aspects of the Guidelines and in particular where they appear to conflict with existing rules of the Central Bank.

With regard to AIFs, Q&A ID 1148 relates to the implementation of the Guidelines and clarifies that the sample wording used with regard to past performance in the ESMA Guidelines satisfies the requirements of Central Bank pertaining to RIAIFs applicable under 9.36 of the Consumer Protection Code even though the wording is not identical.

Action: it is necessary to ensure the requirements of this new regime are observed. This will have implications for marketing activities and materials and related notifications.