Update Regarding Investor Money Regulations
The Investor Money Regulations (Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund Service Providers - SI 105 of 2015) were signed into law on 25 March 2015. The Investor Money Regulations set out requirements in relation to fund service providers holding investor money. The application of the Investor Money Regulations mean that only investor money may be held in a collection account, and investor money must be segregated from the Fund Service Provider’s own money. The Central Bank of Ireland (“The Central Bank”) has decided to postpone the operation date of the Investor Money Regulations from 1 April 2016 to 1 July 2016 subject to certain additional reporting requirements on transition planning.
Read the Central Bank's Guidance on Investor Money Regulations For Fund Service Providers.
CP99: Amendments to AIF Rulebook
The Central Bank issued a Consultation Paper (CP99) setting out details of proposed policy amendments and technical changes to the AIF Rulebook on 30 November 2015.
CP101: Capital Requirement Framework for Market Operators
The Central Bank proposes introducing a risk based capital requirement to apply to Market Operators in Ireland. It is intended that the proposed Capital Requirement Framework would be imposed on Market Operators either as a condition on authorisation in accordance with the MiFID Regulations or in the form of Central Bank regulations under the Central Bank (Supervision and Enforcement) Act 2013. The proposed Capital Requirement Framework sets the Basic Capital Requirement for Market Operators as the higher of six months operating expenses and the exposure assessed through a Market Operator Risk and Capital Adequacy Assessment Process (‘MORCAAP’).
The Central Bank issued a Consultation Paper on the proposed Capital Requirement Framework on 12 February 2016.
Director of Markets Supervision Address to the 5th Annual Funds Congress
The Central Bank’s Director of Markets Supervision, Gareth Murphy, speaking at the 5th Annual Funds Congress, on 10 February 2016, focused on four areas of current supervisory focus: cyber-security risk; disclosure of investment fund fees; leverage; and the stress-testing of investment funds.
Read in full 'Address by Director of Markets Supervision, Gareth Murphy, to the 5th Annual Funds Congress'.
Central Bank Releases Minutes of Meeting of its Board
The Central Bank released the minutes of a meeting of the Bank’s board for the first time on 11 February 2016. Governor Philip Lane announced the measure in January as part of a move to make the Central Bank’s activities more transparent. The minutes will be disclosed approximately six weeks after each meeting. While market sensitive information is not disclosed, the minutes outline corporate governance issues, internal debates and initiatives the Central Bank is taking to fulfil its objectives.
Central Bank Letter Regarding UCITS V
The Central Bank issued a letter providing clarity around the self-certification of the depositary agreement under UCITS V on 4 March 2016. While the provisions relating to self-certification remain unchanged, the depositary agreement can now be submitted for noting independently of the prospectus.
Central Bank Letter Regarding Conflict of Interest (“COI”) Risks in Investment Firms
The Central Bank issued a letter (the “Letter”) to all investment firms providing feedback on the findings of their thematic inspection of conflicts of interest identification and management practices within investment firms on 25 February 2016. The Letter clarifies that it is the Central Bank’s expectation that conflicts of interest should be avoided, or managed appropriately where it is impossible to avoid.
