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Markets and Securities Services |
Ireland
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• DPs: Fund ManCos could appoint their own
employees, employees of the promoter/asset
manager or group employees as DPs, and
directors can still act as DPs. Fund ManCos
could appoint DPs from a third party provider.
Only half the managerial functions must be
performed by DPs who are EEA based.
• Brexit: the CBI has indicated that, while it would
not be possible to predict the outcome of Brexit
negotiations, the CBI would currently consider
the UK as having equivalent requirements to an
EEA jurisdiction for the purposes of the location
requirements. This is helpful for UK promoters
and asset managers implementing CP86
solutions that involve UK-based personnel.
Each Fund ManCo will need to include the
rationale for its board composition in its BP/
PoA to document how the board as a whole
provides it with sufficient expertise to conduct
the tasks expected of the directors and, where
relevant, the DPs for a managerial function. We
understand that it should not be necessary to
submit revised BPs/ PoAs to the CBI for review,
but any such updates could be subject to spot
checks carried out by the CBI.
Additional guidance for Fund ManCos
In addition to the above, as part of CP86 the
CBI published guidance for Fund ManCos on the
topics outlined below.
Delegate oversight
This guidance focuses on the role of boards,
where significant tasks are delegated externally,
and sets out a framework for good practice
with the monitoring and oversight of delegates,
delegated tasks and tasks to be retained. Specific
guidelines on the supervision of delegates in
relation to investment management, distribution,
risk management, and investment operations and
administration are included. The guidance also
addresses matters to be considered by boards of
Irish externally managed investment companies
and ICAVs.
In practice, most boards will already follow
the requirements of the guidance as a matter
of good corporate governance. However,
the guidance includes some areas of focus
that boards should take into account when
reviewing current governance and oversight
arrangements.