Central Bank publishes outcome of third consultation on Fund Management Company Effectiveness

The Central Bank of Ireland has today published guidance for fund management companies on managerial functions, operational issues and procedural matters (PDF 1.33MB).  It has also published details of new rules for fund management companies on an effective supervision requirement and on the retrievability of records.  Those rules are summarised in the Feedback Statement to CP86 - Third Consultation (PDF 0.98MB) which the Central Bank has also published today. 

The Central Bank has been engaged in a body of work to examine and enhance fund management company effectiveness (‘CP86’) since early 2014. This work is designed to improve investor protection by ensuring that fund management companies comply and demonstrate compliance with their regulatory obligations.  In considering this matter from a regulator’s perspective, three key areas were examined:

• Governance
• Compliance
• Effective supervision

‘CP86’ comprised three separate consultations, today’s publication represents the completion of the third CP86 consultation: Consultation on Fund Management Company Effectiveness – Managerial Functions, Operational Issues and Procedural Matters. (PDF 947.89KB)

54 responses were received to this consultation and these are summarised in the Feedback Statement (PDF 0.96MB). Submissions have also been published on the Central Bank’s website here. 

The rules and guidance published today set out the Central Bank’s expectations regarding how designated persons should carry out their role. They describe how fund management companies should manage their records and communicate with the Central Bank. They set out the balanced extent to which the boards and management of Irish authorised and supervised fund management companies’ need to have local presence. These rules and guidance will help to ensure that the Central Bank can supervise fund management companies effectively and will strengthen record keeping by fund management companies. 

Gerry Cross, Director of Policy and Risk, said: “Today’s publication on the outcome of our consultation on fund management company effectiveness is an important milestone and marks the conclusion of 3 years’ policy work on the matter.  It means that we have now published a substantial body of guidance for fund management companies which sets out clearly our expectations of directors and management.  This is supplemented by a small number of new rules which together delivers a package of measures that addresses the governance, compliance and effective supervision of fund management companies.”