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What’s next? The ICAV bill was published by the Department of Finance on 29 July 2014. The bill is expected to be enacted towards the end of 2014 once the legis- lative review process in both houses of the Irish parliament has been completed. However, the pro- visions of the ICAV Act will not take effect until the relevant minister signs the necessary commence- ment order. FATCA - Publication by Irish Revenue Commissioners of finalized guidance notes on the implementation of FATCA Background The Irish Revenue Commissioners (“Revenue”) published on the 1 st October 2014 their finalized Guidance Notes on the implementation of FATCA (“Guidance Notes”). The updated Guidance Notes replace the previous draft Guidance Notes issued in January 2014, and reflect a number of suggestions and clarifications requested by various industry groups. Revenue have indicated that the Guidance Notes are intended to be a living document and will be updated on occasions to reflect practical issues that may arise over time. What’s in there? The revised Guidance Notes clarify that Collective Investment Schemes can choose to register for a Global Intermediary Identification Number (“GIIN”) at either umbrella or sub-fund level.Where registra- tion is done at the umbrella level, reporting should be done at that level.

sessing the creditworthiness of the fund’s assets. Generally, an automated recourse to ratings from CRAs for regulatory purposes shall be prevented. This transposition adapts the relevant provisions of the CRA III in the German Securities Trading Act (Wertpapierhandelsgesetz (WpHG), in the German Banking Act (Kreditwesengesetz (KWG), in the Ger- man Investment Code (Kapitalanlagegesetzbuch (KAGB), in the German Law on Supervision of In- surance Undertakings (Versicherungsaufsichts- gesetz (VAG) and in the German Stock Exchange Act (Börsengesetz). According to the new §29 Abs. 2a KAGB, the fund is not allowed to rely solely on ratings provided by CRAs when evaluating counterparty risks of se- curities or other financial instruments held for the fund. The regulatory authorities have to supervise the alternative rating procedures implemented by UCITS and AIFMs. Breaches of the UCITS or AIFMs obligations will be sanctioned. What’s next? The draft is under discussion with market partici- pants. A final version is expected soon in order to be adopted in time until December 21, 2014. IRELAND Irish Collective Asset Management Vehicle (“ICAV”) introduction Background On 29 July 2014, the Irish government made public the bill introducing the ICAV. Ireland’s new bespoke corporate fund vehicle offers enhanced distribu- tion and a simplified compliance model. The ICAV is being introduced under new legislation which is tailor-made for investment funds resulting in a more

efficient and effective fund structure. The new ICAV structure will run parallel to, rather than replacing, existing fund structures such as unit trusts, invest- ment limited partnerships and variable capital com- panies. What’s in there? The main benefits of the ICAV are its flexibility, its “check the box” feature for US tax purposes and its simplified compliance. The fund will under US tax rules be treated as a transparent or flow-through entity for US federal income tax purposes. This means that any US investor is placed in the same tax position as if they had invested directly in the underlying investments of the ICAV. This status will make the ICAV particularly attractive for US inves- tors seeking tax efficient returns from a regulated corporate fund vehicle. A stream-lined incorporation and authorization pro- cess, as both steps will be carried out simultane- ously by the Central Bank of Ireland (“CBI”) rather than registration first with the Companies Registra- tion Office (“CRO”) followed by CBI authorization. The ICAV will allow a streamlined compliance pro- cedure: currently both the CRO and the CBI need to be informed of material changes including changes to directors; the ICAV will only need to inform the CBI of such company secretarial changes. Overseas investment companies will be able to convert to an ICAV under the streamlined re-dom- iciliation migration one-step process introduced in 2009, rather than being required to migrate and then convert. As a tailor made vehicle designed to cater for the needs of investment funds, the ICAV will be the vehicle of choice for future Irish fund launches and replace the variable capital company over time. Before embarking down the conversion road, funds will have to embark on a cost benefit analysis and consider the tax implications. The Funds’ exist- ing legal document will have to be reviewed and amended accordingly.

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