Central Bank of Ireland confirms Mexico as a comparable jurisdiction

Dillon Eustace LLP’s Asset Management and Investment Funds Team, led by partners Colman O’Loghlen and Hannah Fenlon and supported by associate Sophie Moore, and the Financial Regulation Team, led by partner Keith Waine, were delighted to have successfully completed a submission with the Central Bank of Ireland (Central Bank) demonstrating that Mexico’s regulatory regime for asset management is comparable to the model of prudential regulation applicable to firms included in the following categories:

1. UCITS management companies authorised under Directive 2009/65/EC;

2. investment firms authorised under Directive 2004/39/EC or 2014/65/EU (MiFID) or to provide portfolio management;

3. credit institutions authorised under Directive 2006/48/EC having the approval to provide portfolio management under MiFID; or

4. Externally-appointed AIFMs authorised under Directive 2011/61/EU (AIFMD).

Dillon Eustace was assisted by Mexican counsel, partner Emilio Yarto Sahagún of Yarto & Narro, S.C.

The addition of Mexico to the list of jurisdictions which have been accepted by the Central Bank as having comparable regulatory regimes, paves the way for Mexican discretionary investment managers to be appointed to Irish regulated funds.

In order for a jurisdiction’s regulatory regime to be eligible for assessment for comparability by the Central Bank, it must be a signatory to the ESMA AIFMD Memorandum of Understanding. In addition to demonstrating that the regulatory regime for asset management in the relevant jurisdiction is comparable to the model of prudential regulation applicable to the firms outlined above, an assessment for comparability with the Central Bank will also involve consideration of legislative and regulatory provisions, the supervision process, capital requirements, conflicts of interest and organisational structure, in addition to other matters.

If you have any queries in respect of the above, or you or a member of your group is interested in appointing a discretionary investment manager to manage an Irish fund from a third country, please contact your usual Dillon Eustace contact or any of the individuals outlined below.