Finally, the latest consultation on CP86 has issued. It addresses managerial functions, operational issues and procedural matters.  While there is a lot of detail in the consultation, we would highlight the following proposals which are likely to be of particular interest.

  • A fund management company (which includes a UCITS ManCo, an AIFM, a SMIC and an internally managed AIF) which has a PRISM impact rating of Medium Low or above will be required to:
    • have at least three Irish resident directors or at least two Irish resident directors and one designated person based in Ireland; and
    • have at least two thirds of its directors in the EEA; and
    • have at least two thirds of designated persons in the EEA.
  • A fund management company which has a PRISM impact rating of Low will be required to have:
    • at least two Irish resident directors; and
    • at least two thirds of its directors in the EEA; and
    • at least two thirds of designated persons in the EEA.

The consultation proposes providing a one year transitional period (after final guidance issues) for existing fund management companies to become compliant. The consultation closes on 25 August 2016. The A&L Goodbody Asset Management & Investment Funds team will, of course, be reviewing the consultation in detail. Please contact us if you would like more information or if you would like to contribute to the consultation.  

The publication of this consultation formed part of a Central Bank Markets Update (Issue 3 2016 dated 2 June) which included: