CP86 – Supporting you through the regulatory pressure

From 1 July 2018, CP86 obligations have come into full effect for boards of directors of investment companies, UCITS management companies, alternative investment fund managers (AIFMs) and AIF management companies incorporated and authorised in Ireland.  These rules introduce comprehensive changes and impose key requirements in following areas;

  • Delegate Oversight
  • Organisational Effectiveness
  • Directors’ Time Commitments
  • Managerial Functions
  • Operational Issues
  • Procedural matters

The Consultation Papers findings were implemented in the Central Bank of Ireland’s (CBI) Fund Management Companies (FMCs) Guidance which was originally released in December 2016 a link to which can be found here

The CBI ensures effective supervision of Irish authorised FMCs thus a key focus will be their assessment of how firms have implemented and embedded CP86 requirements.  In order to achieve this, the CBI has considered how best to supervise FMCs and plan to include CP86 in future thematic work programmes.  Assessments will begin with a review of organisational effectiveness and firms’ resources.

FMC boards should ensure the following are in place;

  • Ensure that the independent director responsible for organisational effectiveness is in situ
  • Business Plan/Programme of Activity are CP86 compliant
  • Robust communication matrix between the board and its delegate is in place
  • Fund records and data are of good quality and can be accessed in a timely manner
  • Location of Directors and Designated Persons and how quickly can they meet in person with CBI
  • Planning and Testing to ensure the Regulator’s request for information or onsite inspection can be met

As the CBI engage over the coming months, FundRock are working with firms just like yours to help support them through these changes and ensure that the highest possible governance standards are in place.

If we can be of any assistance in answering any additional questions you may have about our services and how we are working with clients today, please do not hesitate to get in touch.

Andrea Lennon

Director – FundRock Management Company S.A. (Ireland Branch)

andrea.lennon@fundrock.com

Tel: + (353) 1 905 3507