UCITS Permitted Markets  

Constitutional Document

1. Regulation 68(1)(c) of the UCITS Regulations provides that the investments of a UCITS shall comprise inter alia transferable securities and money market instruments admitted to official listing on a stock exchange in a third country or dealt in on another regulated market in a third country which operates regularly and is recognised and open to the public provided that the choice of stock exchange or market is provided for in the fund rules or the instruments of incorporation of the investment company. Regulation 28 of the Central Bank UCITS Regulations requires a responsible person to include a list of the stock exchanges, markets and regulated derivatives markets in which the UCITS may invest in the constitutional document of the UCITS. Accordingly, the stock exchanges and markets (including derivative markets), on which investment assets of the UCITS are listed or traded must be specified in the constitutional document of the UCITS. Alternatively, the constitutional document should incorporate the following:

“With the exception of permitted investments in unlisted securities, the UCITS will only invest in those securities and derivative instruments listed or traded on a stock exchange or market (including derivative markets) which meets with the regulatory criteria (regulated, operate regularly, be recognised and open to the public) and which is listed in the prospectus.” 

Authorisation Process 

2. As part of the authorisation process for a UCITS, a responsible person should confirm to the Central Bank, in writing, that each stock exchange and market listed in the prospectus, or which will be listed in the prospectus in the future, is regulated, operates regularly, is recognised and open to the public. 

3.  A depositary should confirm to the Central Bank, in writing, that it can provide for the safe-keeping of the assets of a UCITS, in relation to each of the stock exchanges and markets provided for in the prospectus, in accordance with the conditions set down by the UCITS Regulations and the Central Bank UCITS Regulations.  This letter should be submitted on the day of authorisation of the UCITS.

Ongoing Review Requirements

4. A responsible person may update the prospectus of a UCITS from time to time to include additional stock exchanges from the list in the constitutional document, as they meet with the regulatory criteria. 

5. A letter from the depositary, confirming that it can provide for the safe-keeping of the assets of a UCITS, in accordance with conditions set down by the UCITS Regulations and the Central Bank UCITS Regulations, should accompany the notification from the responsible person to the Central Bank in relation to the prospectus update.

Issued:  5 October 2015
Latest revision: 4 November 2015