On 19 December 2016, the Central Bank of Ireland issued its final guidance in respect of CP86, following the conclusion of the third CP86 consultation. What are the transitional arrangements for compliance with the new requirements for new or existing structures?
In summary, existing fund management companies must comply with the new rules introduced by CP86 by 1 July 2018. These new rules relate to the streamlining of managerial functions (from 10 managerial functions for UCITS and 15 for AIFMs) to 6 managerial functions, the Organisational Effectiveness role, the retrievability of records rule and the effective supervision requirement.
The Central Bank will only approve applications for authorisation from any new fund management company submitted on or after 1 July 2017 where the fund management company will be organised in a way which complies with the new rules introduced by CP86. The new rules will be included in the amended Central Bank UCITS Regulations and in the forthcoming Central Bank AIF Regulations. The updated CBI AIFMD Q&A (Q1113-1115) and UCITS Q&A (Q1053 and 1074-1075) give more detail on the transitional requirements.