The Board
The board of a UCITS ManCo must comprise at least two Irish resident directors, of which one must be independent, and one director from the promoter organisation.
Designated Persons and Managerial Functions
A UCITS ManCo is required to identify a "designated person" who will monitor and control each of the following six managerial functions prescribed by the Central Bank on a day-to-day basis: (i) investment management; (ii) distribution; (iii) fund risk management; (iv) operational risk management; (v) regulatory compliance; and (vi) capital and financial management.
A designated person may be appointed with responsibility for more than one of these managerial functions, however the same designated person cannot perform both the investment management function and either the operational risk or the fund risk management functions.
The time commitment required for a designated person to manage a particular management function is likely to be significant.
An organisational effectiveness director must be appointed to the board of a UCITS ManCo and must be independent of the promoter organisation. The organisational effectiveness director is regarded as an agent for change in overseeing the continued effectiveness of the operation of the UCITS ManCo.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
