Global Trustee and Fiduciary Services News and Views Issue 48

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Global Trustee and Fiduciary Services News and Views | Issue 48 | 2017 33
Where can directors and DPs be located?
Of particular importance are the new
requirements about where directors and DPs
of a Fund ManCo may be located. These in
turn are linked to the CBI’s Probability Risk
and Impact System (PRISM) rating of a Fund
ManCo and which system is designed to ensure
that the CBI can adequately supervise Fund
ManCos. These requirements will allow for
the flexibility to have DPs to be based outside
Ireland and provide the following.
A Fund ManCo that has a PRISM impact rating
of “low” will be required to have at least:
• Two Irish resident directors.
• Half of its directors resident in the EEA.
• And half of the managerial functions performed
by at least two DPs resident in the EEA.
Moreover, a Fund ManCo that has a PRISM
impact rating of “medium low or above” will be
required to have at least:
• Three Irish resident directors or two Irish
directors and one DP based in Ireland.
• Half of its directors in the EEA.
• And half of the managerial functions performed
by at least two DPs resident in the EEA.
All Fund ManCos that are self-managed UCITS or
internally managed AIFs have a PRISM rating of low.
How can Fund ManCos address these
requirements?
All Fund ManCos will already have two Irish resident
directors. We expect the additional requirements to
be addressed in a number of different ways:
• Board composition: a review of board
composition will need to be carried out to
ensure that half of the directors are located
in the EEA. This may require changes to the
board depending on the country of residence
of the existing non-Irish resident directors.
• Organisational effectiveness role: most
Fund ManCos will already have at least one
independent director who will need to be
appointed to take on this role.
• Managerial functions: the revised managerial
functions will need to be allocated to
directors/DPs.
Of particular importance are the
new requirements about where
directors and DPs of a Fund
ManCo may be located.