Pre-submission process for a Qualifying Investor AIF

The Central Bank requires a pre-submission to be made in respect of certain Qualifying Investor AIFs. The pre-submission must be cleared by the Central Bank before an application for authorisation of the Qualifying Investor AIF may be filed.  Pre-submissions are required in respect of the following:

  1. Qualifying Investor AIFs proposing to invest in Irish property assets; and
  2. Qualifying Investor AIFs proposing to invest in crypto-assets as per the Central Bank’s AIFMD Q&A ID1145.

In the case of (1) above, a pre-submission must contain the following information (non-exhaustive list):

  1. Copies of the prospectus/supplement(s), as relevant;
  2. A completed model portfolio template. The information provided should include a line by line breakdown of the properties and related securities/instruments that the Qualifying Investor AIF intends to utilise (an aggregate percentage per asset class is not acceptable). Note: Where available, details of the specific properties that will be invested in by the Qualifying Investor AIF should be included;
  3. Details of the maximum LTV/leverage limits that will apply including any debt at SPV/intermediate investment vehicle level.Rationale for such limits should also be provided;
  4. Details of the liquidity status of the Qualifying Investor AIF and the redemption provisions that will apply; and
  5. An indication of the expected target market of the Qualifying Investor AIF.

In the case of (2) above, a pre-submission must contain the following information (non-exhaustive list):

  1. In accordance with AIFMD Q&A ID1145, information in relation to how the crypto-assets are capable of being appropriately risk managed, including liquidity risk; credit risk; market risk; operational risk (including fraud and cyber risks); money laundering / terrorist financing risk; and legal and reputation risks; and
  2. In the case of direct investment in crypto-assets, the submission should include details from the proposed depositary demonstrating how it is satisfied that it can provide for the safe-keeping of the assets of the Qualifying Investor AIF in accordance with the conditions set down in the European Union (Alternative Investment Fund Managers) Regulations 2013 (the “AIFM Regulations”).

Note: Where a Qualified Investor AIF proposes to invest no more than 10% of its net asset value in cash-settled Bitcoin futures traded on the Chicago Mercantile Exchange, no pre-submission is required, provided that:

  • The cover letter accompanying the Qualifying Investor AIF application refers to the inclusion of crypto-assets exposure; and
  • In the case of an application for a post authorisation amendment, shareholder approval is obtained for the revision to the Qualifying Investor AIF’s investment strategy to introduce exposure to crypto-assets. This must also be set out in the cover letter.

The Central Bank may request other information it deems necessary in the course of assessing a pre-submission, including certain confirmations from the management company (where one has been designated to act in respect of a particular fund) and in the absence of any such designation, the board of the Qualifying Investor AIF if required.  The Central Bank may also amend the list of Qualifying Investor AIFs which are subject to a pre-submission by update to this webpage.

Pre-submissions should be sent to [email protected] and clearly marked as a “Pre-submission for a Qualifying Investor AIF – [property fund] [crypto-assets]” (delete as appropriate).   Pre-submissions must be made in good time to allow these to be considered by the Central Bank in advance of for the desired authorisation date. The Central Bank will endeavour to assess all pre-submissions and/or respond to queries in relation to pre-submissions in a timely manner.