Review find's investment firms often go beyond requirements for client reporting

• On-site inspections found that investment firms met the client reporting requirements
• Firms must provide clients with regular investment reports which are clear and informative
• Many firms are going beyond the minimum regulatory requirements in order to meet the service expectations of their clients

The Central Bank of Ireland recently completed a thematic inspection examining the quality of investment firms reporting to clients.  The aim of this inspection was to determine the quality of reporting to clients as these reports are a critical element in supporting clients’ decision-making process.  The Central Bank’s expectation is that investment firms would have effective procedures in place to ensure client reports are produced in a timely manner and that the contents are accurate and informative.

Overall the findings of the thematic inspection were positive with firms exceeding the legislative requirements by adopting higher standards of client reporting.  A number of good reporting practices were also identified and these have been communicated to industry for future adoption. 

Director of Markets Supervision, Gareth Murphy said: “Clients of investment firms draw on a wide range of information in order to manage their investments.  Accurate and timely client reports are critical to informed decision-making.  Many firms see the benefit of delivering high standards of client reporting as part of their service offering.  The Central Bank’s expectation is that firms will use the good practices highlighted in this industry wide communication to improve client reporting"

Notes:

Investment firms include MiFID investment firms, MiFID branches passporting into Ireland, and UCITS Managers / AIFMD firms providing MiFID equivalent activity.