The Central Bank consulted on Client Asset Regulations and Guidance (CP 71) in 2013 with a view to strengthening the safeguards around client assets and investor money.
The following Regulations have now issued;
- Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Client Asset Regulations 2015 for Investment Firms (SI 104 of 2015) which come into operation on 1 October 2015, and
- Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund Service Providers (SI 105 of 2015) which come into operation on 1 April 2016.
The regulations are intended to ensure that both investment firms and fund service providers will have stronger systems and controls in place to protect the ownership rights of clients and investors respectively. In addition investment firms and fund service providers will have a process in place which, in the event of insolvency, will facilitate the expeditious return of client assets or investor money.
Director of Markets Supervision, Gareth Murphy, said "The publication of these regulations marks a significant development with regard to the safeguarding of client assets and investor money in Ireland. The development of these regulations is the outcome of a lengthy period of industry consultation with investment firms and funds service providers. The Central Bank will closely monitor the implementation of these regulations so as to ensure that our aim of enhancing investor protection and safeguarding client assets is achieved."
Feedback to the Consultation is available here.