Central Bank of Ireland issues results of “CP86” thematic review
Following completion of the Central Bank of Ireland’s (the “Central Bank”) industry-wide review of compliance with the Fund Management Companies Framework in 2020, a follow-up industry survey was conducted in June 2022. Today, the Central Bank issued a “Dear Chair” letter to fund management companies that sets out the results of that survey. A copy of the letter entitled “Follow up on thematic review of fund management companies’ governance, management and effectiveness” can be viewed on the Central Bank’s website here.
The Central Bank notes that over a three-year period, the funds sector has changed materially in terms of scale, structure and complexity and, while many of these developments are positive, there has been a shift in the risk profile of the sector.
The Central Bank advised that the review has driven significant change in the Fund Management Company landscape in Ireland in terms of how fund management companies structure their business and also how they organise themselves. While the Central Bank recognises the progress made over the past number of years, it advised that fund management companies should remain mindful that there is more work to be done.
The Central Bank expects that this letter will be discussed by boards and that any areas requiring improvement that directly relate to a firm are given due consideration to ensure robust and appropriate governance arrangements are in place.