The Central Bank of Ireland (Central Bank) published a Consultation Paper on Fund Management Company Effectiveness – Delegate Oversight (CP86) on 19 September 2014.
CP86 applies to UCITS management companies, authorised Alternative Investment Fund Managers, self-managed UCITS investment companies and internally managed Alternative Investment Funds which are authorised to act as AIFMs.
CP86 sets out a number of proposed initiatives which are designed to underpin the achievement of substantive control by fund management companies, acting on behalf of investment funds, over the activities of their delegates. CP86 considers (i) the authorisation process, where the quality of the boards and internal arrangements of fund management companies are scrutinised, and (ii) the day-to-day process of guiding and overseeing the administration and investment of the monies invested with investment funds.
The Central Bank has detailed four key elements which are subject to consultation, namely:
- Central Bank Fund Management Company Delegate Oversight Guidance;
- Streamlining designated managerial functions;
- Requirement for Irish resident directors; and
- Rationale for board composition.
The consultation closes on 12 December 2014.