Regulation

Question 1

UCITS summary

Answer 1

investment funds, regulated at a European Union (EU) level. In creating a set of common rules and regulations it allows such funds:

• to seek a single authorisation in one EU member state, and
• to register for sale and market across EU member states.

Question 2

UCITs rules around

Answer 2

The UCITS rules are in effect product based regulation and include requirements around allowable investments, liquidity, disclosure, investor protection and as well the technical and practical organisation of such funds. Given the detailed and specific nature of the UCITS rules these funds are suitable for broad spectrum distribution to both retail and institutional investors.

Question 3

Key aspect of UCITS fund

Answer 3

they must be open-ended and liquid.

Question 4

What asset classes are mostly always established at UCITS funds

Answer 4

Exchange Traded Funds (ETFs) and Money Market Funds (MMFs)

Question 5

What is a MMF?

Answer 5

an open ended mutual fund that invests in highly liquid short-term financial instruments. Money Market Funds can be established with a Constant NAV (CNAV) where the NAV is a constant $1 per share, or with Variable NAV (VNAV) where the NAV can fluctuate. Money Market Funds can be established in Ireland as either UCITS or AIFs. Ireland is currently the number one European domicile for MMFs by net assets. MMFs are currently undergoing EU parliamentary reform.

Question 6

What is an AIF?

Answer 6

The Alternative Investment Fund Managers Directive (AIFMD), implemented in July 2013, has transformed the EU regulatory landscape in the alternatives space.

Ireland was the first jurisdiction to provide a regulated framework for AIFs

Question 7

Qualifying Investor AIF (QIAIF)

Answer 7

The Qualifying Investor AIF is a regulated investment fund suitable for well-informed and professional investors. As the QIAIF is not subject to any investment or borrowing restrictions, it can be used for the widest range of investment purposes.

Question 8

Retail Investor AIF (RIAIF)

Answer 8

the RIAIF could provide an attractive alternative for managers who need to set up a more highly regulated fund but whose investment strategies do not easily fit within UCITS.