S.I. No. 565 of 2023

S.I. No. 565 of 2023 was published under the long title „CENTRAL BANK (SUPERVISION AND ENFORCEMENT) ACT 2013 (SECTION 48(1))(UNDERTAKINGS FOR COLLECTIVE INVESTMENT IN TRANSFERABLE SECURITIES) (AMENDMENT) REGULATIONS 2023“, outlining amendments to the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))(Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (S.I. No. 230 of 2019). These amendments cover the requirements for UCITS management companies providing individual portfolio management services, introducing additional capital requirements and internal capital adequacy assessment processes for such management companies.
More specifically, the amendments introduce a new Regulation 100A, which outlines the additional capital requirements for management companies providing individual portfolio management services. It defines terms such as „assets safeguarded and administered,“ „assets under management,“ „client,“ „client money held,“ „management company,“ and „own funds.“ The regulation also specifies the conditions for a management company to be considered a „small and non-interconnected management company“.
Furthermore, Regulation 100A specifies the calculation of the Risk to Client K-factor requirement, which includes factors such as assets under management, client money held, and assets safeguarded and administered. It provides coefficients for each factor and outlines the monitoring and notification requirements for the management company in relation to the K-factors.
The document also introduces Regulation 100B, which mandates that management companies authorized to provide individual portfolio management services must have sound, effective, and comprehensive arrangements, strategies, and processes to assess and maintain internal capital adequacy. These arrangements should be appropriate and proportionate to the nature, scale, and complexity of the activities of the management company and subject to regular internal review. Additionally, management companies are required to complete and submit an ICAAP questionnaire to the Central Bank of Ireland on an annual basis.
Finally, Regulation 100C outlines transitional measures for existing management companies authorized to provide individual portfolio management services before or on 27 November 2023, and specifies compliance requirements for these companies from 27 May 2024 onwards, full quote (page 9):
„A management company authorised by the Bank to provide individual portfolio management services before or on 27 November 2023 shall, on and from 27 May 2024, comply with Regulations 100A and 100B of these Regulations.“