On 5 July 2018, the Central Bank of Ireland (“Central Bank”) published an updated version of its questions and answers document on the application of the UCITS Directive (“UCITS Q&A”). The updated UCITS Q&A includes an amended question and answer (ID 1002) relating to the investment by UCITS in non-UCITS.
The amendments clarify that, where a UCITS invests in a non-UCITS fund, the constitutional document of the non-UCITS (rather than the prospectus) must include a prohibition on investing more than 10% of its net assets in other investment funds.
The cover note announcing the change to the UCITS Q&A states that UCITS should be in compliance with this revised UCITS Q&A as soon as possible and in any event, no later than 5 October 2018. UCITS that currently invest in non-UCITS ought to review these investments to ensure that the constitutional documents of the non-UCITS meet the above requirement.
The updated UCITS Q&A may be accessed here.