Demonstrating compliance with CP86
What is CP86? In December 2016, the Central Bank of Ireland concluded a body of work, commonly known as ‘CP86’, which is designed to improve fund management company effectiveness.
It sets out the Central Bank’s expectations of how fund management companies should be organised and operated. In particular, it guides fund management companies on complying and demonstrating compliance with the numerous regulatory obligations placed on them by the UCITS and AIFMD regimes. CP86 applies to UCITS management companies, UCITS self-managed investment companies, authorised AIFMs and internally-managed AIFs in Ireland.
Why is it important?
CP86 is important because it sets out how Irish authorised fund management companies can comply with the rules in the UCITS and AIFMD regimes. It deals in some detail with how Directors should control and manage a fund management company including through close oversight of delegates on a day-to-day basis. It is important that fund management companies can demonstrate compliance with CP86. This is particularly so in light of the focus placed on delegation by documents such as ESMA’s Brexit opinion on investment management in July 2017 and the Commission’s proposal for a review of the ESAs in September 2017. For most fund management companies, the effective date for all of the CP86 measures is 1 July 2018.