Focus on Fund Management Companies in Ireland – Part II

In May 2019, we published an article Focus on Fund Management Companies in Ireland which discussed the rationale behind the Central Bank of Ireland’s (‘CBI’) planned approach to review the fund management companies (‘FMCs’) established in Ireland, against regulatory expectations and guidance that had evolved over the course of a number of years.

In that article, we highlighted the significant impact that the funds industry in Ireland has had on employment and the economy, and the contribution that it has made to the global funds industry as a domicile and fund servicing centre. Now, almost 18 months later, the funds industry has proven itself to be incredibly resilient in the face of the Covid-19 pandemic, it continues to be a significant employer and tax payer. It is playing a crucial role in the EU as an established fund domicile, supporting hundreds of asset managers in implementing their post-Brexit strategies. It is undoubtedly a growing sector, and so the publication of the CBI’s letter to the Chair of each FMC with the findings from its sectoral review, couldn’t be more timely.

In this follow-on article, we are not going to go into the details of the CBI’s findings. The letter, and the action required to be taken by FMCs is not particularly ambiguous, or unexpected. It requires a focus on resources, governance arrangements, risk management, delegate oversight, board effectiveness (including diversity), and regulatory compliance.

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