Ireland abolishes daily ETF portfolio transparency requirement

The relaxation by the Central Bank of Ireland of its requirement to disclose exchange-traded fund (ETF) portfolios daily will benefit active ETF managers by protecting their proprietary trading information.

On 17 April 2025, the Central Bank of Ireland (CBI) updated its questions and answers on Undertakings for Collective Investment in Transferable Securities (the UCITS Q&A) to permit ETFs to disclose portfolio holdings on a quarterly basis. ETFs are no longer required to disclose portfolio holdings daily.

This update is a significant boost to Ireland's thriving active ETF industry which continues to dominate the European ETF market. This enhancement builds upon the CBI's ETF rule changes introduced late last year permitting the establishment of ETF share classes in a fund without designating the fund an ETF.

CBI permits quarterly portfolio holdings disclosures for Irish ETFs

The daily portfolio disclosure obligation has long been a concern of active exchange-traded fund managers, fearing that their proprietary strategies, or their "secret sauce", could be copied. The fact that the CBI has now dispensed with the daily disclosure obligation may be seen as an implicit recognition by the CBI that the twin objectives of keeping the exchange-traded price of an ETF close to its net asset value and protecting investment managers' intellectual property can be addressed other than through daily portfolio disclosures.

Active ETFs in Europe

Actively managed ETFs combine the benefits of traditional ETFs with the expertise of active portfolio management. Unlike passive ETFs that track a specific index, active ETFs have portfolio managers who make decisions about asset selection and allocation with the goal of outperforming a benchmark or achieving specific investment objectives. This approach allows for greater flexibility and responsiveness to market conditions.

The benefits of actively managed ETFs include providing investors with the potential for higher returns through professional investment management while maintaining the liquidity and transparency typical of ETFs.

Ireland as the premier destination for European ETFs

Since the debut of Europe's first exchange-traded fund in 2000, Ireland has emerged as the leading European base for ETF issuers by demonstrating a keen ability to identify and leverage global investor interest in ETFs. Presently, ETFs domiciled in Ireland have surpassed US$1 trillion, accounting for roughly 71% of the entire European ETF market at the end of 2024.

One of the biggest factors contributing to Ireland's popularity as a domicile for ETFs is the comprehensive network of double taxation treaties it has in place. Among these, the double taxation treaty with the United States stands out, generally reducing the withholding tax on US dividends from 30% to 15% for Irish ETFs investing in US equities. 

The new quarterly disclosure obligation: chapter and verse

The Central Bank's UCITS Q&A, published 17 April 2025, states that: Where the UCITS ETF or UCITS ETF share class of a UCITS discloses its portfolio holdings on a periodic basis, the responsible person must ensure that:

• appropriate information is disclosed on a daily basis to facilitate an effective arbitrage mechanism

• the prospectus discloses the type of information that is provided in point (i)

• this information is made available on a non-discriminatory basis to authorised participants and market makers

• there are documented procedures to address circumstances where the arbitrage mechanism of the ETF is impaired

• there is a documented procedure for investors to request portfolio information

• the portfolio holdings as at the end of each calendar quarter are disclosed publicly within 30 business days of the end of the quarter

Conclusion

A wide range of Irish ETF structuring options are available, including establishing a standalone ETF platform, converting an existing mutual fund into an ETF, adding an ETF share class to an existing UCITS fund, or adding an ETF sub-fund on to an existing UCITS fund.

How Ogier can help

At Ogier, our dedicated team of legal professionals specialises in the structuring and establishment of ETFs, guiding clients through the complexities of regulatory and compliance requirements. We can assist with structuring and launching both passive and active ETFs, ensuring seamless listings on major European exchanges such as Euronext Dublin, Euronext Amsterdam, Deutsche Boerse and the London Stock Exchange. Our expertise extends to advising on the creation and redemption processes, custodian services and the implementation of innovative ETF strategies.

For more information on our Investment Funds services, contact one of our dedicated team members below.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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