This briefing is to remind you of the practical steps which must be taken by all regulated financial service providers, which will include corporate investment funds and fund management companies (“Fund Companies”), in respect of controlled functions (“CFs”) prior to 1 December 2012 in accordance with the Fitness and Probity Standards issued by the Central Bank (the “Standards”).
As you may recall, the fitness and probity regime is effective on a phased basis as follows:
- from 1 December 2011, existing and new pre-approval controlled functions (“PCFs”) were subject to the Standards;
- from 1 March 2012, new appointments to CFs were subject to the Standards; and
- from 1 December 2012, the Standards will apply to all CFs.
Accordingly, by 1 December 2012, an internal due diligence process as to the Standards should be carried out by each Fund Company in respect of all persons in CF roles, as at 1 March 2012.
The most likely CFs to apply in respect of Fund Companies which operate on a delegation model basis would be CF-1 (the provision of a financial service whereby the person is likely to exercise a significant influence on the conduct of affairs of the Fund Company) and/or CF-2 (the provision of a financial service related to ensuring, controlling or monitoring compliance by a Fund Company with its relevant obligations).
Examples of CF positions for a Fund Company may include the following:
- Company Secretary – CF-1
- Money Laundering Reporting Officer (MLRO) – CF-2
A link to the Central Bank's Guidance on the Standards, together with a link to our briefing note on the Standards are provided below: