Regulatory Update of Particular Notice

Author: Clerkin Lynch LLP

Date Published 25/11/2021

Central Bank Notice on Amendments to Pre-Approval Controlled Functions

Section 22 of the Central Bank Reform Act 2010 enables the Central Bank to prescribe by regulation pre-approval controlled functions (PCFs). The Central Bank has issued a notice noting that it considers a number of amendments to the current PCF list to be warranted on the basis of its supervisory experience of the use of a number of current PCFs. These relate to PCF-2 Non-executive director, PCF-15 Head of Compliance with responsibility for Anti-Money Laundering and Counter Terrorist Financing Legislation, PCF-30 Chief Investment Officer and PCF-31 Head of Investment).

This remains a proposal and the Central Bank invited comments in October with regard to this. The primary change proposed of relevance to the ICAV is the proposed distinguishing of non-executive directors (INeds) (PCF-2) into either INeds (PCF-2A) or independent INeds (PCF-2B). all existing INeds will be listed as PCF-2A but in relation to the latter category there is to be a requirement to notify the Central Bank which individuals should be designated as PCF-2B, which will also require confirmation that the relevant due diligence to assess independence has been undertaken.

Action: no action necessary at this time but it will be appropriate to monitor the implementation of this to see if an updated filing will be necessary to distinguish between the status of directors.