Just last week (8 May), the Central Bank of Ireland (the “Central Bank”) issued a survey to Irish SMICs and fund management companies (together, “FMC”), seeking details on their progress in complying with the CP86 guidance. Responses are required by 21 May 2018.
The questions asked will focus the minds of managers and give a clear indication of what the Central Bank expects to see in place come the effective date, 1 July 2018. In addition, it is fair to say that the survey offers some clues as to what aspects of the guidance the Central Bank will focus on when undertaking future thematic inspections.
The survey starts by asking respondents to rate their level of preparedness to implement the guidance against one of five levels, ranging from “Unprepared” to “Fully Prepared”. From here, the survey enquires as to whether respondents have completed a formal, detailed and documented gap analysis and then proceeds to drill down into how FMCs will achieve certain requirements. Below is an overview of the questions asked and what we think the Central Bank expects to see in place.
|Gap analysis||Formal, detailed and documented analysis – Central Bank warned that it may request a copy|
|Board composition||Necessary changes to comply with residency requirements|
|Designated Persons (“DP”)||Identify for each managerial function and satisfy residency requirements|
|Formalities around the appointment of DPs||Obtain PCF39 approval and have separate letter of appointment|
|Organisational Effectiveness role||Identify holder|
|Document retrievability||System for immediate retrievability in place|
Importantly, the Central Bank has asked respondents to indicate whether the DPs identified are EEA, non-EEA or Ireland resident. Of equal importance is the requirement to have carried out a formal, detailed and documented gap analysis, which may be reviewed by the Central Bank.
With the 1 July deadline fast approaching, Carne’s team of CP86 experts are on hand assist you in meeting the Central Bank’s expectations. In addition to our management company and DP solutions, Carne continues to undertake CP86 gap analyses on behalf of clients. Finally, our technology solution (CORR) is fully CP86-compliant and facilitates the provision to the Central Bank of any documents requested within the stipulated timeframes.