Performance Fees – Central Bank of Ireland Takes Initial Steps Towards Implementing ESMA’s Guidelines

On 3 December 2020, the Central Bank of Ireland (the "Central Bank") published CP134, a consultation on new performance fee guidance for UCITS and certain types of retail AIFs. This consultation is an initial step by the Central Bank in the implementation of ESMA's performance fee guidelines (the "Guidelines"). By way of reminder the Guidelines are set to apply on a phased basis from 5 January 2021. The Central Bank is proposing to adopt a phased implementation approach with the provisions of the Guidelines that are consistent with the existing requirements being included in its proposed guidance.

Feedback on CP134 is due by 15 January 2021. Those with existing performance fees should note the proposal that any amendments to the performance fee will trigger the requirement to comply with the Central Bank's proposed guidance as of the date of amendment.

Our advisory provides details on the approach the Central Bank proposes to take in relation to the implementation of the Guidelines.

 

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