The Central Bank introduces macroprudential measures for Irish-authorised GBP-denominated LDI funds

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Date: 03 May 2024

On 29 April 2024, the Central Bank of Ireland announced the introduction of macroprudential measures for Irish-authorised GBP-denominated Liability Driven Investment (LDI) funds. Building on the recent Consultation Paper - Macroprudential measures for GBP Liability Driven Investment funds - the measures require that GBP-denominated LDI funds authorised in Ireland maintain sufficient resilience to a minimum of 300 bps increase in UK yields. 

This measure is being codified in coordination with the CSSF, with whom the Central Bank of Ireland have undertaken an aligned consultation process. Both the Central Bank of Ireland and the CSSF are introducing the yield buffer as an ‘other restriction’ under Article 25 of AIFMD.