Q. Regulation 26(2) of the Central Bank UCITS Regulations provides that "a responsible person shall ensure that all share classes within the UCITS or sub-funds thereof have the same dealing procedures and frequencies". Does a UCITS ETF have to comply with this provision?
A. Generally, a UCITS ETF will have to comply with this provision. The Central Bank will permit
i. a UCITS ETFs to have different dealing cut-off times for cash and in specie dealings;
ii. a UCITS ETF with hedged and unhedged share classes to have different dealing cut-off times where the UCITS ETF implements currency hedging at class level.
In each case, the Responsible Person must make an application to the Central Bank seeking a waiver from Regulation 26(2) of the Central Bank UCITS Regulations in relation to share classes for which different dealing cut-off times are requested. The application must detail the rationale for seeking the waiver.