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, operational risk management, distribution, regulatory compliance, capital and financial management.
As part of these new regulations, UCITS management companies will:
- Be required to put in place an organisational effectiveness role performed by an independent director.
- Be required to segregate the performance of the organisational effectiveness role from all other managerial functions.
- Be required to segregate the performance of the operational and fund risk management functions from the investment management managerial function.
All funds which are authorised by the CBI after 1 st November 2015 will be required to reflect the six new managerial functions in their business plans. The transition deadline for existing funds to amend their business plans for the inclusion of the six functions is 30th June 2016. In the UCITS managerial functions table, we outline how we envisage the existing ten UCITS functions will translate to the six new functions.
AIFMD Managerial Functions
The CBI is making a similar amendment to the Alternative Investment Fund (AIF) Rulebook which will also be effective from 1 st November 2015. The existing sixteen AIFMD managerial functions are being reduced to six functions. The same updates regarding organisational effectiveness and the segregation of the operational and fund risk management functions from the investment management managerial function will apply.
All funds which are authorised by the CBI after 1 st November 2015 will be required to reflect the six new managerial functions in their programmes of activity. The transition deadline for existing funds to convert their business plans to the six functions is 30th June 2016. In the AIFMD managerial functions table, we outline how we envisage the existing sixteen AIFMD functions will translate to the six functions.
UCITS Managerial Functions
Download our AIFMD managerial functions table here