Risk Equalisation Rule – Feedback Statement Published
In November 2023, having consulted with the Central Bank of Ireland as required by the Investor Compensation Act, 1998, the ICCL issued a consultation document to all Fund A participant firms setting out four proposals to amend the Risk Equalisation Rule (‘RER’).
Arising from engagement with industry participants the ICCL has concluded that all four proposals, as outlined in the consultation should be implemented in full, without alteration. In addition, as set out in section 3 of the RER Feedback Statement, the ICCL has determined that certain transitional arrangements and other related actions should be taken for RER in-scope transactions undertaken between 1 March 2020 and 31 March 2024.
The updates to the RER will take effect from 1 April 2024 for any new RER transactions. Further detail is included in the RER Feedback Statement which is available from the publications section of the ICCL website.
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