On 4 November 2015, the Central Bank issued an amended version of its AIF Rulebook. The new AIF Rulebook reflects the requirements of the Central Bank’s fund management company guidance. Chapter 3 of the AIF Rulebook relating to AIFMs has been amended to reflect the following:
- the reduction in number of managerial functions to six, namely: investment management; fund risk management; operational risk management; distribution; regulatory compliance; and capital and financial management;
- the requirement to appoint a director with responsibility for “organisational effectiveness”. The organisational effectiveness role,
- while not a managerial function, must be performed by an independent Chair or an independent director and shall not be performed by a director with responsibility for any of the six managerial functions;
- the requirement that there can be only one designated person per managerial function. Furthermore, the amended AIF Rulebook specifically requires that the same person must not perform managerial functions in relation to investment management and fund risk management or operational risk management.
The Central Bank acknowledges that AIFMs have only recently prepared detailed programmes of activities as a result of the regulatory changes under AIFMD and will allow for a transitional period until 30 June 2016 to implement the changes above and to make the necessary updates to their programmes of activity.