/ Irish UCITS Remain Eligible for Chilean Pension Investments

October 28, 2011

This article is reproduced from a Newsletter Investment Funds Update from Mason, Hayes & Curran. View the full web version here.

The Chilean pension regulator, the Comisión Clasificadora de Riesgo (“CCR”), recently reclassified Irish domiciled UCITS into its “Restrictive Investment Category” rather than the “General Investment Category” where they were previously included.

Leading Chilean lawyer, Felipe Cousiño explained: “Irish UCITS are reclassified and this merely means that Chilean pension funds will continue to be allowed to invest in Irish domiciled funds but subject to the special investment limits set forth in the Investment Regime set forth by the Superintendency of Pensions. Such special limits are quite high so in practice it would seem there would not be regulatory pressure for any divestment and there would still be room for further investment, possibly subject to a rebalancing of the portfolio of investments that fall under the special limits.”

The timing of the decision to reclassify Irish funds in Chile is set against a background of recent EFAMA statistics that show that for the first half of 2011 Irish domiciled UCITS funds recorded the highest level in the EU with net inflows of EUR 39 billion in this period.

The status of Irish UCITS in Chile

Irish UCITS Remain Eligible for Chilean Pension Investments