Under EU law the UK will become a third country with effect from 1 January 2021 and consequently UK AIFMs will be designated as a non-EU AIFMs under AIFMD. The Central Bank of Ireland (Central Bank) clarifies the implications for UK AIFMs that intend to continue to market AIFs, both EU AIFs and non-EU AIFs, in Ireland as follows:
Non-EU AIFM (former UK AIFM) marketing AIFs in Ireland
The Central Bank confirms:
Non-EU AIFMs, that previously were permitted to market AIFs in Ireland under Article 32 or alternatively, under Article 36 of AIFMD, and that propose to continue to market those AIFs to professional investors in Ireland must apply to the Central Bank for approval in accordance with Regulation 43 (which is equivalent to Article 42 of AIFMD) on or before 1 January 2021.
Although the Central Bank may receive the Regulation 43 notification in advance, it will not process registration applications under Regulation 43 until on or after 1 January 2021, i.e. at the end of the transition period.
UK AIFMs that were previously operating under the Article 32 or Article 36 regimes will be subject to less onerous regulatory checks relating to their Regulation 43 notification.
There is no requirement for the non-EU AIFM, or the AIF that it manages, to appoint a depositary in order to market its AIFs to professional investors in Ireland.
The Central Bank confirms there are no fees associated with Regulation 43 notifications and that once a notification is made under Regulation 43, the non-EU AIFM is required to comply with the reporting obligations under Regulation 25, which is the equivalent to Article 24 of AIFMD, irrespective of whether marketing has commenced.
UK AIFMs that have relied on the marketing passport under Article 32 of AIFMD or were permitted to place their funds in Ireland under Article 36 of AIFMD, and who would like to continue to market their AIFs to professional investors in Ireland should be aware of the requirement to submit an Article 42 registration notification with the Central Bank on or before 1 January 2021.
If you would like to discuss the above or require further information, please contact a member of our Investment Funds team.
The content of this article is provided for information purposes only and does not constitute legal or other advice.