The Central Bank of Ireland requires each Irish authorised fund management company to have an Organisational Effectiveness role. The Organisational Effectiveness role is a chairperson-type role which must be carried out by an independent director (who may also be the Chair). The Organisational Effectiveness role is primarily concerned with monitoring the effectiveness of a fund management company’s organisational arrangements and initiating improvements where appropriate.
In addition to overseeing or carrying out tasks identified in the fund management company guidance, the Organisational Effectiveness role is also responsible for overseeing or carrying out regulatory obligations set out in the AIFM Regulations and UCITS Regulations, as applicable.
The purpose of the Organisational Effectiveness Role Profile template is to set out the fund management company’s instructions for how the role is to be carried out. It is also to clearly document which tasks the Fund Management Company is engaging the Organisational Effectiveness role to oversee or carry out.
The relevant tasks originating from the AIFM Regulations and UCITS Regulations are listed in the annex to the Organisational Effectiveness Role Profile. The annex also contains details of the (i) frequency of reporting from delegates and oversight by the Organisational Effectiveness role, (ii) frequency of reporting from the Organisational Effectiveness role to the board and (iii) parameters for immediate escalation from the Organisational Effectiveness role to the board. As such, the Organisational Effectiveness Role Profile is a key part of the reporting framework for the fund management company.
How to use this template
This template role profile describes how the Organisational Effectiveness role shall be carried out. The tasks to be carried out are directly linked to the provisions of the Fund Management Company Guidance, the UCITS Regulations 2011, and the AIFM Regulations 2013.
The Organisational Effectiveness Role Profile sets out tasks which must be carried out for all fund management companies, regardless of whether they are AIFMs or UCITS management companies. It also contains an annex which sets out additional tasks that must be overseen or carried out by the Organisational Effectiveness role. The annex is divided into two parts. Part 1 sets out additional tasks that must be overseen or carried out specifically for AIFMs. Part 2 sets out additional tasks for UCITS management companies.
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