IRISH-AUTHORISED GBP-DENOMINATED LDI FUNDS
Following the announcement by the Central Bank, on 29 April 2024, of the introduction of macroprudential measures for Irish-authorised GBP-denominated Liability Driven Investment (LDI) funds, GBP LDI funds established from now on must comply with the measures immediately. Existing GBP LDI funds have a 3-month transitional period to comply, so in-scope GBP LDI funds will need to start working on this now.
The measures require that GBP-denominated LDI funds authorised in Ireland maintain sufficient resilience to be able to withstand sudden and adverse shocks to UK interest rates.
ESMA has published its advice to the Central Bank on the measures, concluding that the measures are justified and should contribute to improving the resilience GBP LDI funds authorised in Ireland. It has also encouraged the Central Bank regulators to monitor the evolution of the GBP LDI funds and to assess the necessity to recalibrate the yield buffer.
NATIONAL PAYMENTS STRATEGY
The Department of Finance's National Payments Strategy (NPS) team will continue to engage with stakeholders in May 2024, following the publication by the Minister for Finance of a summary of submissions to the public consultation on the NPS. The NPS itself is expected to be published in H2 2024. For more information on the NPS and the related Access to Cash legislation, read our insights here:
- National Payments Strategy: Department of Finance consults on its plans
- 'Access to Cash' Legislation: Minister for Finance publishes General Scheme of Bill
NPLS / BUY-TO-LET PROPERTIES
The publication of legislation giving effect to the Government's decision to require a landlord selling a dwelling to first offer it for purchase to the tenant has been delayed from Q1 2024 to Q2 2024. The Government is considering the current draft Bill and the pre-legislative screening report, which made several recommendations in relation to the proposed legislation.
NPLS / EARLY MORTGAGE ARREARS
Regulated lenders will be starting to assess the measures they might need to take to address the issues identified by the Central Bank in 24 April 2024 Dear CEO Letter arising from its thematic review of early mortgage arrears supports, the outcome of which was published by the Central Bank on the same date.
The thematic review highlighted issues relating to late, incomplete and unclear information, and issues with how regulated firms engage with and support borrowers facing early mortgage arrears. It also identified limited take-up of temporary alternative repayment arrangements (ARAs) prior to the full assessment of a borrower's standard financial statement being carried out – it has asked firms to consider making more effective use of temporary ARAs while a borrower's circumstances are being assessed.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.