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?
The transitional arrangements for compliance with the Fund Management Guidance were outlined the Central Bank AIFMD Q&A and Central Bank UCITS Q&A and can be summarised as follows; Only new authorised entities are subject to the authorisation process which requires the rationale for the board composition to be documented in the programme of operations/business plan. However, the Central Bank is of the view that it is good practice for the director performing the Organisational Effectiveness role for each entity (new or existing) to document the rationale for the board composition as part of developing this role and to include this in the programme of operations/business plan when it is next updated. J Except in rare cases where unique and unusual circumstances apply, an organisational effectiveness review should, at a minimum, be conducted on an annual basis. J Existing entities can make changes to their organisational structure during the transitional period but only changes which bring them closer to compliance with the final CP86 rules and guidance. J The transitional arrangements (if any) for (i) the managerial functions; (ii) new requirements in relation to an effective supervision requirement and the retrievability of records; and (iii) adherence to the fund management company guidance chapters 1-6 can be summarised as here.