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ESMA Updates its Benchmarks Q&A
AUTHOR(S): Tara Doyle, Michael Jackson, Dualta Counihan, Anne-Marie Bohan, Shay Lydon, Liam Collins, Philip Lovegrove, Elizabeth Grace, Oisin McClenaghan, Michelle Ridge, Barry O’Connor, Donal O’Byrne
PRACTICE AREA GROUP: Asset Management and Investment Funds
On 24 May 2018, the European Securities and Markets Authority (“ESMA”) updated its questions and answers document on the Benchmark Regulation to clarify its position regarding the need to include a reference in the prospectuses issued under the UCITS Directive and the Prospectus Directive to the registration of administrators and benchmarks in the ESMA register of EU benchmark administrators and third country benchmarks (“ESMA Register”). ESMA distinguishes between prospectuses approved on or after 1 January 2018 and those approved prior to that date.
Prospectus approved on or after 1 January 2018
A reference to the fact that the administrator is listed in the ESMA Register should be included in the prospectus or, if the relevant administrator is not registered in the ESMA Register by the time a prospectus is published, the prospectus should include a statement to that effect.
In the latter case, once the relevant administrator is included in the ESMA Register, UCITS prospectuses should be updated at the first opportunity.
Prospectus approved prior to 1 January 2018
UCITS prospectuses should be updated at the first opportunity or at least within 12 months after 1 January 2018. If the administrator is not included in the ESMA Register by 1 January 2019, the prospectus should include a statement to that effect.
The latest version of the Benchmarks Q&A (dated 17 July 2018) may be accessed here.