Splitting PCF-39 Designated Person into six PCF roles aligned to the specific managerial functions set out in the Central Bank's UCITS Regulations, AIF Rulebook and the Fund Management Companies Guidance. These are:
Designated Person with responsibility for Capital and Financial Management (PCF-39A)
Designated Person with responsibility for Operational Risk Management (PCF-39B)
Designated Person with responsibility for Fund Risk Management (PCF-39C)
Designated Person with responsibility for Investment Management (PCF-39D)
Designated Person with responsibility for Distribution (PCF-39E)
Designated Person with re responsibility for Regulatory Compliance (PCF-39F)
Key points include:
RFSPs must submit a list of the individuals performing each of the PCF-39A, PCF-39B, PCF-39C, PCF-39D, PCF-39E and PCF-39F roles by 16 November 2020
CBI prior approval in writing will be required for any change of the individual in the PCF roles after 5 October 2020 (by means of a new Individual Questionnaire)
In a welcome change from the CBI's 'Notice of Intention' , RFSPs will not be required to review their assessment of persons already in place for PCF-39 roles under Section 21 of the Central Bank Reform Act 2010 and submit confirmation of such an assessment to the CBI. This represents a practical approach given that such RFSPs will be conducting assessments by end 2020 and filing annual confirmations in early 2021. Nevertheless, RFSPs may choose to refresh their existing F&P documentation to reflect the new PCF roles in their policies, letters of engagement and letters of confirmation.
Chief Information Officer role. The CBI has introduced a new PCF-49 role of Chief Information Officer (CIO) to reflect the advancement of information technology and its impact on the way business is conducted in the financial services industry. This underlines the general CBI focus on the impact of information technology in the sector. The CBI expects all RFSPs to determine the applicability of the CIO role, in light of the principle of proportionality which takes into account the size and complexity of the RFSP’s operations, the nature of the RFSP’s activity, the types of services provided and the corresponding Information and Communication Technology (ICT) and security risks related to its processes and services. The CBI expects that, in general, a CIO role will likely apply at firms that have a PRISM impact rating of high or medium high and/or where information technology is a key enabler or core element of the RFSP’s business model (CBI FAQ 3 of CBI Frequently Asked Questions). As most Funds will have a PRISM rating of Low there will be scope to determine that such a role is not required, though a review should be undertaken.