AIFMD Q&A

The AIFMD Q&A sets out answers to queries likely to arise in relation to the implementation of the AIFMD. It is published in order to assist in limiting any uncertainty until definitive positions and practises are finalised. It is not relevant to assessing compliance with regulatory requirements.

AIFMD Q&A The first edition of the AIFMD Q&A was published on 16 May 2013.

AIFMD Q&A Second Edition: On 3 July 2013 the Central Bank published a second edition, with amendments to questions ID 1014, ID 1016, ID 1018 (email address change); ID 1020, ID 1023, ID 1024 and ID 1025. New questions ID 1042 to ID 1055 were included.

AIFMD Q&A Third Edition: The Central Bank published a third edition on 19 July 2013. Amendments were made to questions ID 1001, ID 1007, ID 1022, ID 1024, ID 1044, ID 1045, ID 1046, ID 1047, ID 1049 and ID 1052. New questions ID 1056 to ID 1059 were included.

AIFMD Q&A Fourth Edition: On 30 September 2013 the Central Bank published a fourth edition, with amendments to questions ID 1020, ID 1022, ID 1029, ID 1030, ID 1046, ID 1050 and the second ID 1059 was renumbered ID 1060. New questions ID 1061 to ID 1064 were included.

AIFMD Q&A Fifth Edition: On 8 November 2013 the Central Bank published a fifth edition. New question ID1065 is included.

AIFMD Q&A Sixth Edition: On the 13 December 2013, the Central Bank published a sixth edition of the AIFMD Q&A. There are three new questions ID 1066 - 1068 . Some questions which are no longer relevant have been deleted while others have been amended for clarification purposes. In particular question ID 1021 provides additional guidance in relation to Article 36 of the AIFMD.

AIFMD Q&A Seventh Edition: On 4 February 2014 the Central Bank published a seventh edition, with amendments to questions ID 1019, ID 1025 and ID 1026.

AIFMD Q&A Eighth Edition: On the 7 March 2014, the Central Bank published an eighth edition of the AIFMD Q&A. Questions ID 1041, ID 1046 and ID 1058 were amended. New questions ID 1069 and ID 1070 were included.

AIFMD Q&A Ninth Edition: On the 2 May 2014, the Central Bank published a ninth edition of the AIFMD Q&A. Question ID1054 was amended. A new question ID1071 was also included.

AIFMD Q&A Tenth Edition: On the 28 July 2014, the Central Bank published a tenth edition of the AIFMD Q&A. Amendments were made to question ID1021 and new questions 1072-1077 were included.

AIFMD Q&A Eleventh Edition: On the 05 November 2014, the Central Bank published an eleventh edition of the AIFMD Q&A. New questions ID 1078 (reporting by non-EU AIFMs) and ID1079 – ID1084 (loan originating Qualifying Investor AIFs) are included.

AIFMD Q&A Twelfth Edition: On the 23 January 2015, the Central Bank published a twelfth edition of the AIFMD Q&A. New questions ID1085 (delegation) ID1086 - ID1087 (transitional arrangements) and ID1088 (disclosure) are included.

AIFMD Q&A Thirteenth Edition: On 12 June 2015, the Central Bank published a thirteenth edition of the AIFMD Q&A, with amendments to questions ID 1030 and ID 1058. New questions ID 1089 - ID 1093 (Marketing of unauthorised AIF) are included.

AIFMD Q&A Fourteenth Edition: On 15 July 2015, the Central Bank published a Fourteenth edition of the AIFMD Q&A. New questions ID 1094 (Irish authorised AIFs seeking to acquire shares through the Shanghai-Hong Kong Stock Connect) and ID1095 (Investments in unregulated funds) are included.

AIFMD Q&A Fifteenth Edition: On 12 August 2015, the Central Bank published a Fifteenth edition of the AIFMD Q&A. New question ID 1096 (Feeder AIF) is included.

AIFMD Q&A Sixteenth Edition: On 5 October 2015, the Central Bank published a Sixteenth edition of the AIFMD Q&A. New questions ID 1097 (Directed Brokerage), ID1098 (Board Composition) and ID1099 (Non- material change) are included

AIFMD Q&A Seventeenth Edition: On 4 November 2015, the Central Bank published a Seventeenth edition of the AIFMD Q&A. A revision has been made to ID 1030 (Non EU AIFM) and a new question ID1100 in relation to subscription and redemption monies of umbrella funds.

AIFMD Q&A Eighteenth Edition: On 24 March 2016, the Central Bank published an Eighteenth edition of the AIFMD Q&A. A revision has been made to ID 1100 and new questions ID1101 and ID1102 have been added in relation to the updated guidance subscription and redemption monies of umbrella funds to make reference to the publication of guidance entitled "Umbrella funds - cash accounts holding subscription, redemption and dividend monies".

AIFMD Q&A Nineteenth Edition: On 2 June 2016, the Central Bank published a nineteenth edition of the AIFMD Q&A. The new questions added were: ID 1104 (Fund Management Company- organizational effectiveness); ID 1105 (Rules - significant influence in the context of certain types of AIFs); and ID 1106 - ID1107 (Companies Act 2014). (ID 1106 was previously issued in the form of a general information note and included in the Markets Update published on the 12 June 2015.)

AIFMD Q&A Twentieth Edition: On 12 September 2016, the Central Bank published a twentieth edition of the AIFMD Q&A. New questions ID1108 – ID 1110 (Umbrella cash accounts) were included.

AIFMD Q&A Twenty-first Edition: On 25 November 2016, the Central Bank published the twenty-first edition of the AIFMD Q&A. A new question ID1111 relating to pension scheme arrangements under EMIR was included.

AIFMD Q&A Twenty-second Edition: On 19 December 2016, the Central Bank published the twenty-second edition of the AIFMD Q&A. Existing question ID 1094 is updated. New questions ID 1112 - ID 1116 are included.

AIFMD Q&A Twenty-third Edition: On 3 January 2017, the Central Bank published the twenty-third edition of the AIFMD Q&A. New questions ID 1117 - ID 1122 regarding loan originating Qualifying Investor AIFs are included.

AIFMD Q&A Twenty-fourth Edition: On 13 March 2017, the Central Bank published the twenty-fourth edition of the AIFMD Q&A, with amendments made to ID 1021, Depositary Services. This amendment was made as a consequence of the publication of the Central Bank (Supervision and Enforcement Act) 2013 (Section 48(1)) (Investment Firms) Regulations 2017.

AIFMD Q&A Twenty-fifth Edition: On 15 May 2017, the Central Bank published the twenty-fifth edition of the AIFMD Q&A. A new question ID 1123 related to the designated email address for fund management companies is included.

AIFMD Q&A Twenty-sixth Edition: On 6 October 2017, the Central Bank published the twenty-sixth edition of the AIFMD Q&A. A new question ID 1124 related to the maintenance of a designated email address for regulatory correspondence in respect of Irish authorised AIFs is was included.

AIFMD Q&A Twenty-seventh Edition: On 20 November 2017, the Central Bank published the twenty-seventh edition of the AIFMD Q&A. Question ID 1094 in relation to AIF acquiring Chinese shares through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect was amended.

AIFMD Q&A Twenty-eighth Edition: On 2 January 2018, the Central Bank published the twenty-eighth edition of the AIFMD Q&A. New questions ID 1125 and ID 1126 regarding the PRIIPS Regulation, and ID 1127 relating to prospectus disclosure in the context of the Benchmarks Regulation were included

AIFMD Q&A Twenty-ninth Edition: On 14 March 2018, the Central Bank published the twenty-ninth edition of the AIFMD Q&A. In the section on 'Loan Originating Qualifying Investor AIF' questions ID 1079, ID 1081, ID 1117 and ID 118 are deleted and question ID 1119 was amended. A new question, ID 1128, was included.

AIFMD Q&A Thirtieth Edition: On 4 May 2018, the Central Bank published the thirtieth edition of the AIFMD Q&A. ID 1083, which related to loan originating Qualifying Investor AIF and obligations to report pursuant to the Central Credit Act 2013, was updated.

AIFMD Q&A Thirty-first Edition: On 4 February 2019, the Central Bank has today issued the 31st edition of the Central Bank AIFMD Q&A which included a new Q&A ID 1129, in relation to Irish Qualifying Investor AIFs with UK AIFMs. The Q&A clarifies that a QIAIF will be permitted to designate a UK AIFM as its AIFM. QIAIFs migrating to such an arrangement need to assess the impacts arising from the loss of the marketing passport under AIFMD including notification to investors, amendments to documentation, filings with the Central Bank or other supervisory authorities and any other operational issues.

AIFMD Q&A Thirty-second Edition: On 7 March 2019, the Central Bank published the thirty-second edition of the Central Bank AIFMD Q&A which included an updated Q&A ID 1129, in relation to Irish Qualifying Investor AIFs with UK AIFMs. The updated Q&A clarified that the QIAIFs with UK AIFMs (which become non-EU AIFMs) are subject to the full AIFMD depositary regime including the AIFMD depositary liability provisions.

AIFMD Q&A Thirty-third Edition: On 29 March 2019, the Central Bank issued the 33rd edition of the Central Bank AIFMD Q&A which included a new Q&A ID 1130 in relation to Irish AIFs which acquire Chinese bonds through the Bond Connect infrastructure.  The Q&A clarifies that if an Irish authorised AIF proposes to acquire Chinese bonds through Bond Connect, the depository of the AIF, or an entity within its custodial network, must ensure it retains control over the bonds at all times.

AIFMD Q&A Thirty-fourth Edition: On the 13 July 2020, the Central Bank issued the 34th edition of the Central Bank AIFMD Q&A, which included new Q&A IDs 1131 and 1132 in relation to liquidity stress testing in AIFs. The Q&As clarified the Central Bank’s expectations in relation to liquidity stress testing (LST) in AIFs, particularly in relation to the application of the ESMA ‘Guidelines on liquidity stress testing in UCITS and AIFs’. The Q&As set out that the Central Bank considers that LST should generally be performed at least quarterly and that LST should be employed at all stages in an AIF’s lifecycle, including at the design phase.

AIFMD Q&A Thirty-fifth Edition:  On the 9 October 2020, the Central Bank issued the 35th edition of the Central Bank AIFMD Q&A, which included a new Q&A ID 1133 in relation to liquidity stress testing in AIFs. The Q&A clarified the Central Bank’s expectations in relation to liquidity stress testing in AIFs, particularly in relation to the application of the ESMA “Guidelines on liquidity stress testing in UCITS and AIFs”. The Q&A sets out the Central Bank’s reporting expectations where a stress test reveals a material risk. 

AIFMD Q&A Thirty-sixth Edition: On 23 November 2020, the Central Bank issued the 36th Edition of the Central Bank AIFMD Q&A, which included new Q&A IDs 1134 and ID 1135.  The Q&As concern a discontinuation of the practice of requiring general partners of investment limited partnerships to be approved by the Central Bank as AIF management companies.

AIFMD Q&A Thirty-seventh Edition: On 2 February 2021, the Central Bank issued the 37^th edition of its AIFMD Questions and Answers document. The Q&A address questions relating to authorisation of DAoFI (ID 1136, ID 1137, ID 1138, ID 1139] and the scope of the defined term “issuing body” as contained in the AIF Rulebook (ID 1140).

AIFMD Q&A Thirty-eight Edition: On 1 April 2021, the Central Bank of Ireland issued the 38^th edition of the Central Bank AIFMD Q&A, which included two new Q&A’s, ID 1141 and ID 1142. The Q&A [ID 1141] relates to raising capital from investors by way of a shareholder (unitholder) loan. The AIF Rulebook does not envisage or specifically permit arrangements which involve loans between an authorised AIF and its members (investors). Such arrangements would not appear to be consistent with the objective of collective investment on behalf of an authorised AIF’s members. The Central Bank may revisit this matter during future public consultations related to the Central Bank’s AIF Rulebook (and their subsequent conversion into regulations).  The Q&A [ID 1142] relates to whether an authorised AIF can enter into transactions with its investors. Except as where expressly set out in relevant legislation, there appears to be no particular prohibition in the legislation or the AIF Rulebook to prevent an authorised AIF from entering into transactions with investors. However, the AIF Rulebook does not envisage that such transactions would take place. ID 1142 sets out the Central Bank’s expectations in this regard. The Central Bank may also revisit this matter during future public consultations related to the Central Bank’s AIF Rulebook. 

AIFMD Q&A Thirty-ninth Edition: On 24 June 2021, the Central Bank issued the 39^th edition of the Central Bank AIFMD Q&A, which updated QAs ID 1021 and ID 1136 and included two new Q&As, ID1143 and ID1144.QA ID 1021 has been updated generally and to clarify the extent to which an Irish entity can perform duties for non-EU AIFs pursuant to Article 36(1)(a) of the AIFMD. QA ID 1136 updates the types of AIF for which a Depositary of Assets other than Financial Instruments (DAoFI) can act. New QA, ID 1143, outlined the circumstances in which a DAoFI can accept an appointment from a non-EU AIFs pursuant to Article 36(1)(a) of the AIFMD to perform the duties set out in Article 21(7)-(9) of the AIFMD.  QA ID 1144 confirmed the Central Bank’s position in relation to AIFs having a share class that makes distributions to charity. The Q&A confirmed that this is permissible, subject to a number of conditions being met by the AIF.

AIFMD Q&A Fortieth Edition: On 29th July 2021, the Central Bank issued the 40^th edition of the Central Bank AIFMD Q&A, which included a new Q&A, ID1145. The new Q&A, ID 1145, sets out the Central Bank’s position with respect to Retail Investor AIFs and Qualified Investor AIFs gaining exposure (directly or indirectly) to crypto-assets.  The Central Bank’s approach in relation to crypto-assets will be kept under review, continue to be informed by European regulatory discussions on the topic and may change should new information or developments emerge in the future.

AIFMD Q&A Forty-First Edition: On 10 September 2021, the Central Bank issued the 41st Edition of the Central Bank AIFMD Q&A, which includes new Q&As, ID1146 and ID 1147. The new Q&A, ID 1146, sets out the Central Bank’s position with respect to an AIFM whereby its respective AIF is of the view that it no longer meets the criteria of an AIF as per Regulation 5(1) of the AIFM Regulations. Q&A, ID 1147 sets out the Central Bank’s expectations in relation to an AIFM operating or planning to operate in the manner of a third party management company. The Q&A confirms that where new business results in a material increase in the nature, scale or complexity of a firm’s business, the Central Bank deems this to be a change that materially affects the basis on which authorisation has been granted and requires notification to the Central Bank in accordance with Regulation 11 of the AIFM Regulations 2013.  In these circumstances, management companies are required to engage proactively with Central Bank supervisors and to ensure that they are appropriately resourced to service the additional business.

AIFMD Q&A Forty-Second Edition: On 1 October 2021, the Central Bank published the 42nd Edition of the Central Bank AIFMD Q&A. The new Q&A ID 1148 related to the implementation of paragraph 47 of the ESMA Guidelines on marketing communications under the Regulation on cross-border distribution of funds (the “ESMA Marketing Guidelines”). The new Q&A IDs 1149 and 1150 related to investment by Qualifying Investor AIFs and Retail Investor AIFs in UK investment funds.

AIFMD Q&A Forty-Third Edition: On 29 October, the Central Bank issued the 43^rd edition of the Central Bank AIFMD Q&A, updating Q&A ID 1139.  The amended Q&A, ID 1139, sets out the Central Bank’s position in relation to non-financial instrument assets a Depositary of Assets other than Financial Instruments (DAoFI) may safe-keep. The list of permissible non-financial asset classes has been updated to include aircraft.

AIFMD Q&A Forty-Fourth Edition: On 20th December, the Central Bank issued the 44th Edition of the Central Bank AIFMD Q&A, which includes three new Q&A’s, ID 1151, 1152 and 1153.

ID 1151 sets out the Central Bank’s expectations in respect of an arrangement involving a non-discretionary investment advisor which provides services to a QIAIF. The Q&A affirms the Central Bank’s expectation that the investment advisor is performing a role that is advisory in nature and the AIFM must be able to evidence this upon request from the Central Bank.

ID 1152 sets out the Central Bank’s expectations that multi-manager Retail Investor AIFs (“RIAIFs”) will comply with ESMA’s Q&A of July 2021 on performance fees in multi-manager AIFs. It confirms that existing multi-manager RIAIFs must bring their performance fee methodologies into compliance by 1 January 2023. 

ID 1153 addresses the circumstances of establishment of a new multi-manager RIAIF utilising a performance fee and notes that those wishing to establish a new multi-manager RIAIF with a performance fee must do so in compliance with ESMAs Q&A of July 2021 on performance fees in multi-manager AIFs.

AIFMD Q&A Forty-Fifth Edition: On 5^th October 2022, the Central Bank issued the 45^th Edition of the Central Bank AIFMD Q&A, which includes two new Q&A’s, ID 1154 and 1155. ID 1154 relates to QIAIFs which invest more than 50% of net assets in another investment fund and the circumstance where the reference to “net assets” can be understood to refer to committed capital. ID 1155 relates to the leverage limits for loan originating QIAIFs and addresses the circumstance where reference to “net asset value” can be understood to refer to committed capital.

AIFMD Q&A Forty-Sixth Edition: On 21 December 2022, the Central Bank published the 46^th Edition of the Central Bank AIFMD Q&A. This new edition revises Q&A ID 1126, which considers if AIFs in scope of the PRIIPs Regulation are required to file KIDs with the Central Bank. The Q&A sets out the the Central Bank’s requirement that Retail Investor AIFs which produce PRIIPs KIDs shall file these on an ex post basis. This will include periodic updates to existing KIDs.  The first annual reporting of such KIDs will take place in January 2024.

AIFMD Q&A Forty Seventh Edition: On 4 April 2023, the Central Bank of Ireland published the 47^th Edition of the AIFMD Q&A. This edition of the Q&A revises ID1145, which considers if a RIAIF or a QIAIF can invest either directly or indirectly in crypto-assets. The revised Q&A does not change the Central Bank’s position in relation to RIAIFs. The Central Bank is increasing limits for indirect exposure to digital assets, depending on the liquidity provided by the QIAIF: where a QIAIF is open-ended it can gain exposure to digital assets of up to 20% of NAV. Where a QIAIF is closed-ended or has limited liquidity it can it can gain exposure to digital assets of up to 50% of NAV. Requirements to avail of this are set out in the revised QA.

AIFMD Q&A Forty-Eighth Edition: On 01 November, 2023 the Central Bank published the 48^th Edition of its AIFMD Q&A document.This edition featured the publication of a new Q&A (ID 1156) which sets out the circumstances in which the Central Bank may exempt, pursuant to Section 15(1) of the Investment Limited Partnerships Act 1994, an investment limited partnership from the provisions of European Union (Qualifying Partnerships: Accounting and Auditing) Regulations 2019 (S.I. 597 of 2019).  

The 48^th Edition also extended the exemption from the loan origination regime which is currently available to AIFs who grant loans to subsidiaries (set out in Q&A ID 1084) to AIFs who grant loans to co-investment vehicles in which they have a majority interest.