Summary - Investment Funds, Companies and Miscellaneous Provisions Act, 2005 (No. 12 of 2005)

The Investment Funds, Companies and Miscellaneous Provisions Act, 2005 (No. 12 of 2005), enacted on 29 June 2005, made a number of changes to the existing law on investment funds, with a view to providing the greatest flexibility to the Funds Industry while at the same time keeping appropriate controls in place. It provided for the introduction of a new type of investment fund vehicle - the non-UCITS (Undertakings for Collective Investment in Transferable Securities) Common Contractual Fund (CCF) and it also provided for the introduction of cross investment and segregated liability for investment funds.

A number of other changes were made to general company law to remove existing anomalies and pave the way for smooth transposition of EU Directives on Market Abuse and Prospectuses. In addition, some minor amendments to Consumer Law were made mostly to increase the level of maximum fines that can be imposed on parties found guilty of breaches of specific consumer legislation and an immediate requirement of the co-operative sector was answered by the provision of increases in certain financial limits relating to co-operatives. Amendments were also made to the Takeover Panel Act and the Competition Act.

In summary, therefore, the Act provided for:

1. the introduction of a Non-UCITS contract fund structure i.e. the Common Contractual Fund (CCF) structure;
2. the amendment of the Companies Act 1990 to provide for the introduction of segregated liability and cross investments for investment funds;
3. the amendment of the Companies Acts to enable the transposition of the EU relating to Market Abuse
4. the amendment of the Companies Acts to enable the transposition of the EU Prospectus Directive;
5. other miscellaneous amendments to the Companies Acts to remove anomalies and make other changes that were considered needed to be made;
6. the amendment of certain pieces of consumer protection legislation largely to increase the maximum fines that can be imposed on conviction;
7. the amendment of the Industrial and Provident Societies Act 1893 to allow an increase in certain financial limits;
8. the amendment of the Takeover Panel Act 1997 regarding its scope; and
9. the amendment of the Competition Act 2002 concerning retention of evidence seized by the Authority;