The Central Bank of Ireland has signalled its intention not to count directors and 'designated persons' of Irish fund management companies who reside in the United Kingdom instantly as 'third country' functionaries in the event of a 'no deal' Brexit.
At the moment, the UK's departure from the EU is still timed for 29 March and a so-called withdrawal deal has still not been announced. On 30 March, therefore, the UK will become a non-EU or 'third' country. Should a 'no deal' Brexit arise, the Central Bank will consider whether the UK meets its Effective Supervision Requirement. This requirement is applied to UCITS (Undertakings for Collective Investments in Transferable Securities) management companies by Regulation 100 of the Central Bank UCITS Regulations. It is also applied to Alternative Investment Fund Managers as a condition of authorisation and is set out in the Central Bank Guidance.
While the Central Bank is making up its mind about the UK meeting the requirement, it "does not propose adopting a default position which would treat the UK as not satisfying the Effective Supervision Requirement." This is, effectively, a declaration of a transitional period in which British 'designated persons' can go on as before. After it has finished its deliberations, the Central Bank will determine whether the UK, as a country, continues to satisfy the Effective Supervisory Requirement and will confirm its decision by publishing a notice on its website.
Fund management companies (UCITS management companies, authorised Alternative Investment Fund Managers (AIFMs), self-managed UCITS investment companies and internally managed Alternative Investment Funds which are authorised AIFMs) had to comply with the Effective Supervision Requirement by 1 January this year.