Central Bank publishes updated AIF Rulebook setting out additional capital requirements for AIFMs authorised to provide individual portfolio management services

The Central Bank has published an updated AIF Rulebook, following a consultation (CP 152), which sets out additional capital requirements for AIFMs authorized to provide individual portfolio management services. The AIF Rulebook outlines the rules for Retail Investor AIFs, and the definitive rules for each Retail Investor AIF will be set out in its letter of authorization. The AIF Rulebook also outlines the types of conditions that the Central Bank may apply to AIFs established in other jurisdictions which propose to market to retail investors in Ireland.
As a reminder, the Central Bank is responsible for the authorization and supervision of unit trusts, common contractual funds, investment companies, and investment limited partnerships, and has the power to impose conditions on them. The conditions imposed by the Central Bank are contained in the AIF Rulebook, which supersede all requirements set out in previous Non-UCITS Notices. Each chapter of the AIF Rulebook must be read in conjunction with all the other requirements set out in the AIF Rulebook, as well as with the investment fund legislation, AIFMD Level 2, and the AIFM Regulations.
The AIF Rulebook includes conditions in Chapter 1 on Retail Investor AIF Requirements, in Chapter 2 on Qualifying Investor AIF Requirements, in Chapter 3 on Alternative Investment Fund Managers Requirements, in Chapter 4 onAIF Management Company Requirements, and in Chapter 5 on AIF Depositary Requirements, which are imposed by the Central Bank under powers given to it under the legislation.
Specifically, Chapter 3 Part A on Alternative Investment Fund Managers Requirements applies to AIFMs which are authorized before or on 27 November 2023, and applies until 27 May 2024. From 27 May 2024 on, Chapter 3 Part B applies to AIFMs which are authorized after 27 November 2023, and to all AIFMs, including those authorized before or on 27 November 2023.
AIFMs that come within the scope of the AIFM Regulations and cannot avail of the exemptions from authorization set out in Regulation 4 of the AIFM Regulations, or opt to be authorized under the AIFM Regulations, are subject to Chapter 3. Chapter 4 applies to AIF management companies which are not authorized under the AIFM Regulations, and these AIF management companies will be required to become registered AIFMs if they are also an AIFM which does not exceed the thresholds detailed in the AIFM Regulations. Hence AIF management companies which are authorized under the AIFM Regulations are subject to Chapter 3 – Alternative Investment Fund Manager Requirements.
In the event of any difference or discrepancy between the AIF Rulebook and the investment fund legislation, AIFMD Level 2, or the AIFM Regulations, the provisions of the investment fund legislation, AIFMD Level 2, or the AIFM Regulations will prevail. Where a condition set out in the AIF Rulebook is amended or deleted, any legal proceedings, or any investigation, disciplinary or enforcement action in respect of any requirement may be continued, and any breach of the requirement so amended or deleted may subsequently be the subject of a legal proceeding, investigation, disciplinary or enforcement action by the Central Bank or other person, as if the requirement had not been amended or deleted.