As detailed on our Front Page newsalert, 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 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 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.
  • A fund management company 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
    • at least two thirds of its directors in the EEA; and
    • at least two thirds of designated persons in the EEA.

The consultation proposes a one year transitional period (after final guidance issues) for existing fund management companies to become compliant. The consultation period will close on 25 August 2016. .