Purpose of this guidance

1. The purpose of this guidance is to set out the Central Bank’s expectations regarding how persons who conduct managerial functions ("Designated Persons") should carry out their roles.

The role of Designated Persons

2. The Central Bank has identified six key managerial functions for fund management companies - Capital and Financial Management; Operational Risk Management; Fund Risk Management; Investment Management; Distribution; and Regulatory Compliance. The Central Bank requires fund management companies to identify an individual, known as a Designated Person, who will be responsible for monitoring and overseeing the managerial function assigned to him or her. It is possible for a Designated Person to oversee more than one managerial function. Furthermore, the same Designated Person may carry out the managerial functions of (i) fund risk management and (ii) operational risk management. However, he or she may not perform the investment management managerial function and either the fund risk management managerial function or the operational risk management managerial function.

3. Designated Persons should receive separate letters of appointment from fund management companies. The letter of appointment should include inter alia the time commitment involved and the rate of payment. Where a director acts as a Designated Person, he or she should receive two letters of appointment - one for the role of director and one for the role of Designated Person.