Q: The feedback statement to CP86 Consultation on Fund Management Company Effectiveness - Delegate Oversight provides that the Central Bank will amend its authorisation processes for fund management companies to require inter alia that the rationale for the board composition be included in the business plan/programme of operations. Are existing UCITS management companies required to insert a board composition rationale into their business plans?
A: Only new UCITS management companies are subject to the authorisation process which requires the rationale for the board composition to be documented in the business plan. However, the Central Bank is of the view that it is good practice for the director performing the Organisational Effectiveness role for each UCITS management company (new or existing) to document the rationale for the board composition as part of developing this role and to include this in the business plan when it is next updated.