Cayman Islands

Central Bank of Ireland Third Consultation – CP86 June 2016

Background and Introduction In September 2014, the CBI1 issued a consultation paper entitled Fund Management Company Effectiveness – Delegate Oversight (‘CP86’). CP86 applies to both UCITS and AIFMD compliant funds and management companies. In November 2015, the CBI issued guidance in respect of: Delegate Oversight Organisational Effectiveness Directors’ Time Commitments In CP86 June 2016, the […]

Directors’ Compliance Statement – Companies Act 2014

Background – Companies Act 2014 The Companies Act 2014 (“the Act”) came into force in Ireland on 1 June 2015. A key provision of the Act impacting the Irish investment fund industry is: Section 225, the introduction of a requirement for certain incorporated companies to include in the annual report a directors’ compliance statement (“DCS”). […]

Update – UCITS V Remuneration – April 2016

Introduction UCITS1 V was published in August 2014 and EU member states transposed the directive into national law on 18 March 2016. Two of the main areas relate to a new depositary regime and regulations governing UCITS remuneration policies. The focus of this briefing note is on remuneration. Remuneration relates to fixed and variable pay […]

KB Associates Fund Governance Survey 2016

Introduction Significant changes to Ireland’s fund governance regime are being introduced further to consultation paper 86 (“CP86”) which was issued by the Central Bank of Ireland. Key developments include: A requirement that boards document the rationale for their composition Increased likelihood of inspection for fund or management companies where directors hold more than twenty board […]

CBI Programme of Themed Inspections for 2016

Background The CBI1 oversees in excess of 6,000 Irish domiciled funds. The CBI conducts themed inspections to supplement its supervisory activities under its risk-based supervisory framework PRISM2. In 2015, CBI themed inspections focussed on cyber security, integrity of regulatory returns, depositary oversight, UCITS3 risk management and the treatment of pricing errors. Recent Developments The CBI […]

Central Bank of Ireland Report on Anti-Money Laundering

Background The CJA 20101 transposed the EU’s Third Money Laundering Directive into Irish Law. There is a legally enforceable obligation on all Funds and Fund Service Providers to comply with the CJA 2010. The CBI2 is assigned the responsibility of monitoring the compliance of all Firms with CJA 2010. Recent Developments On 18th November 2015, […]

KBA Update – UCITS; Removal of the Promoter Requirement

Role of the Promoter The CBI1 currently stipulates that all UCITS2 applications must be coordinated by an entity which has relevant experience and appropriate financial resources. The CBI views entities regulated in equivalent jurisdictions as having relevant expertise. Shareholder funds of EUR 635,000 is deemed to be sufficient financial resources. It should be noted that […]

Rationalisation of UCITS and AIFMD Managerial Functions

UCITS Managerial Functions On 5th October 2015, the new Central Bank of Ireland (CBI) UCITS regulations were published. They will commence on 1 st November 2015. A key aspect of these new regulations is the reduction of the UCITS managerial functions from ten to six. The new managerial functions are investment management, fund risk management, […]

Update – CP86 Delegate Oversight – Designated Persons and Directors

Background In September 2014, the CBI1 issued a consultation paper entitled Fund Management Company Effectiveness – Delegate Oversight (‘CP86’). The aim of CP86 is to ensure that the management and operation of regulated funds have the interests of the investors at their core. To achieve this aim, the CBI proposed initiatives in the following areas: […]

KBA Update – Cyber Security in the Investment Funds Industry

Cyber-crime Background Cyber-crime is becoming more prevalent due to the increasing reliance by firms in all sectors on information technology. A report issued by security firm Gemaltoi revealed that a record 1 billion data records were compromised worldwide in 2014. The investment funds industry is not immune to the risk of cyber-crime. Recent examples of […]

Funds, Flows & Facts – July 2015

Fund Flow Digest The first quarter of 2015 saw significant growth for UCITS funds with net inflows of €285bn. This was an increase of 92% on the same period in 2014 and over a fourfold increase on Q4 2014. This significant increase can be linked to the positive sentiment created by the quantitative easing (‘QE’) […]

Update – Fund Management Company Effectiveness – Delegate Oversight

Background Investors increasingly focus on an investment fund’s governance structure as an important consideration when allocating capital. Regulators in many fund domiciles are considering the most appropriate fund governance requirements. Recent Developments In 2014 the Central Bank of Ireland (“CBI”) issued a consultation paper considering how fund boards should be constructed and act to ensure […]