Central Bank publishes 18th Edition of the UCITS Q&A and revised guidance in relation to share classes


Date: 28 June 2017

On 30 January 2017, ESMA issued its Opinion “Share Classes of UCITS” (the Opinion). The Opinion sets out four high-level principles a UCITS should follow when setting up share classes in the a UCITS or sub-fund in the case of an umbrella UCITS. These are:

  • Common Investment Objective.  ESMA is of the opinion that derivatives-based hedging arrangements at share class level, other than currency risk hedging, are not compatible with this principle.
  • Non-contagion
  • Pre-determination
  • Transparency

For the most part, rules which the Central Bank applies to UCITS with regard to share classes are consistent with the Opinion. In order to fully apply the principles, the Central Bank has amended the guidance entitled "UCITS and AIF Share Classes"


In addition, and in order to provide clarity for stakeholders, the Central Bank has published some additional QAs in the eighteenth edition of the UCITS Q&A document. These are new Questions ID 1077 and ID 1078.


The Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (as amended) (the Central Bank UCITS Regulations) may be amended in the future to reflect the Opinion.


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