Central Bank published 49th Edition of the AIFMD Q&A

The AIFMD Q&A, first published on 16 May 2013 by the Irish Central Bank, recently came out in its 49th Edition. This Q&A aims to address anticipated questions related to the implementation of the AIFMD, providing guidance until definitive positions and practices are established. Not intended for assessing regulatory compliance, the Q&A is accessible through ‚Markets Update‘ and the Central Bank website, subject to periodic updates. The Central Bank reserves the right to modify its approach to any covered matter at any time.
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In the 49th Edition, published on 27 November 2023, an existing Q&A (ID 1126) is revised to clarify that when an AIF is mandated to produce a Packaged Retail and Insurance-based Investment Products Key Information Document (PRIIPs KID), it should be submitted through the Portal following the Central Bank’s guidance. Three new Q&As (IDs 1157, 1158, and 1159) in this edition explore permissible actions when a Retail Investor Alternative Investment Fund (RIAIF) or a Qualifying Investor Alternative Investment Fund (QIAIF) invests through a subsidiary.
Here we would like to present the new/revised questions and answers in full, together with a brief summary of their respective answer:
ID 1126
Q. Are AIFs in scope of the PRIIPs Regulation required to file KIDs with the Central Bank?
A. Where an AIF is required to produce a PRIIPs KID, this should be filed through Portal in accordance with the Central Bank’s guidance on the filing of a PRIIPs KID.
ID 1157
Q. I am a QIAIF/RIAIF that intends to invest through a wholly owned company or a subsidiary. The wholly owned company or a subsidiary has been established with the intention of the QIAIF/RIAIF using it for investment purposes. Should the wholly owned company or subsidiary be considered as being established by the QIAIF/RIAIF?
A. Yes. The Central Bank considers the wholly owned company or subsidiary as being established by the QIAIF/RIAIF, including in circumstances where the wholly owned company or subsidiary existed prior to the establishment of the QIAIF/RIAIF.
ID 1158
Q. I am a QIAIF/RIAIF that intends to invest through a wholly owned company or subsidiary. The wholly owned company or subsidiary has been established with the intention of the QIAIF/RIAIF using it for investment purposes. Can the wholly owned company or subsidiary establish or participate in the establishment of a further vehicle that is also used for investment purposes?
A. Yes. This is permitted subject to the Central Bank’s requirements in relation to subsidiaries (as set out in the AIF Rulebook) and the requirements of this QA and QA IDs 1157 and 1159 being adhered to.
ID 1159
Q. I am a QIAIF/RIAIF that intends to invest through a co-investment vehicle that includes other third party investors and is not a wholly owned subsidiary of the QIAIF / RIAIF. Is that permissible?
A. Yes. The ownership / control of the co-investment vehicle must reflect the actual economic interest that the QIAIF/ RIAIF has in that vehicle and the QIAIF / RIAIF must demonstrate that such arrangements reflect the true economic interests of the parties holding shares in that vehicle. The reasons for use of a co-investment vehicle, rather than a wholly owned subsidiary, must be documented by the Board of the AIFM and approved by the depositary in writing and be available to the Central Bank on request. The arrangement should not be structured in such a way as to circumvent the policy objectives of this QA.
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For access to prior versions of the AIFMD Q&A, interested parties can refer to THIS archive.