CP86 TOOLKIT

350 HOURS OF HAND MADE BEST PRACTICES 

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.

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 CP86 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 Central Bank’s Thematic Review of CP86 Implementation and the continued focus of its supervisors on assessing how well fund management companies are complying with CP86.

Aquest’s CP86 Templates for Fund Mancos

Understanding the challenge faced by fund management companies, Aquest has developed the CP86 Templates for Fund Mancos. It is designed to tie together the roles of directors, designated persons and delegates in a strong and structured framework of written agreements and instructions, reporting and oversight. The CP86 Templates provide a comprehensive range of templates, checklists and training in order to facilitate implementation and demonstrate compliance. It includes:

Annotated CP86 Guidance - notes how the fund management company is complying with each paragraph of the CP86 guidance.

Annual Activity Checklist – all of the regulatory activities which need to be undertaken on an annual or more frequent basis are located in one template

Directors letters of appointment – template amendment letters incorporating the provisions required by CP86

Designated Persons letters of appointment – template amendment letters ensuring that regulatory obligations and a reporting framework are assigned to each Designated Person

Contracts with delegates – template amendment investment management, distribution and fund administration agreements to ensure a contractual nexus between delegates and the regulatory tasks to be carried out.

350 HOURS OF HAND MADE BEST PRACTICES 

01

CP86 Compliance Procedures

Template Board CP86 Compliance Policy which summarises how the fund management company complies with the Central Bank of Ireland’s Fund Management Company Guidance initially and on an ongoing basis.

02

ANNOTATED Cp86 GUIDANCE

Compliance tool which annotates each paragraph of the Fund Management Company to record which element of the CP86 Toolkit ensures compliance.  The tool also includes a summary report outlining the level of compliance.

03

ACTIVITY CHECKLISTS

Activity checklists which identify the Fund Management Company Guidance items and UCITS/AIFMD regulatory requirements which require review or reporting to the FMC’s board on an annual or more frequent basis

04

CONTRACTS WITH DELEGATES

Template amendment Investment Management Agreement, Distribution Agreement and Fund Administration Agreement which include detail schedules of all of the regulatory tasks being allocated to each delegate.

05

Designated Persons letter of appointment

Six template amendment Designated Persons letter of appointment which include detail schedules of all of the regulatory tasks being overseen by each Designated Person.

06

DIRECTOR LETTER OF APPOINTMENT

Template amendment Directors’ letter of appointment setting out all relevant provisions from the Fund Management Company Guidance.

07

INVESTMENT FUND MANDATE

Template Investment Fund Mandate for use each time a new investment fund is presented to the board for approval.  Includes all relevant items from the Fund Management Company Guidance and all ‘matters requiring design’ from UCITS/AIFMD.

08

Organisational effectiveness role

Template role description of Organisational Effectiveness role generally

09

POLICIES AND PROCEDURES

Template amendment Directors’ letter of appointment setting out all relevant provisions from the Fund Management Company Guidance.

10

INVESTMENT FUND MANDATE

Template amendment fund management company agreement setting out all relevant provisions from the Fund Management Company Guidance

350 HOURS OF HAND MADE BEST PRACTICES 

Daniel Lawlor invested eight x 40-hour weeks to create this CP86 Toolkit.

Allow at least 350 hours if you intend to create these in-house.

This is a suite of templates that will guide you on what exactly needs to be done to ensure CP86, AIFMD and UCITS compliance. 

  • Fully aligned from the ground up.

  • Clarity across the team.

  • Best practices in place.

  • Strengthen negotiating position with delegates by understanding the regulatory source of the requirements you are asking them to perform

  • Support Designated Persons, Organisational Effectiveness Director, the board and support staff by providing a framework that helps them understand their roles and what is required of them

Past and current clients of Aquest Advisory receive 25%. - €7485 + VAT

Buy the CP86 Toolkit on or before 15 August 2020 and we will match your investment.

 

For example, a €7485 CP86 Toolkit will get you €14,970 worth of Aquest made up of Funds Masterclass Fitness & Probity Masterclass, and rapid response access to Daniel Lawlor through Regulator Intelligent (RQ) counsel

About Aquest

Advisory Firm and Virtual Academy for Regulated Financial Services firms wanting access to insights, training and guidance on how to be Regulator Intelligent from authorisation to sanctions, new legislation, and everything in between.

Services

Regulator Intelligent; improving your relation with the Regulator. 

 

Programmes for Banks, Admins, Depos, ManCos spanning how to interpret, implement and measure your firm's degree of compliance compared with best practices. 

Contact us

To book a programme, workshop, keynote email Anne@Aquest.ie

To have Daniel Lawlor speak at your event, please email Anne@Aquest.ie

To join our Online Academy, email Anne@Aquest.ie

11 Wynnefield Road, Dublin 6, Ireland

Anne@Aquest.ie 

Copyright: 2019 Aquest Ltd.

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