Client Asset Requirements

Client asset protection is a regulatory priority for the Central Bank of Ireland and will remain on the Central Bank of Ireland’s supervisory and enforcement agenda.

Therefore it will remain on the board’s agenda to ensure compliance of the proposed new requirements are adhered to.

Client Asset Requirements are changing and firms have to take steps to ensure they comply with the new requirements. The new requirements bring Fund Service Providers into scope for the first time, others will have to assess how their current framework must be modified.

The following are the key changes and additions to the Client Asset Regulations:

• For the first time Fund Service Providers will be subject to “Investor Money Regulations” in respect of client funds held in collection accounts (i.e. bank accounts that are used to receive subscription monies and remit redemption proceeds). 
• Firms will be required to appoint an individual as Head of Client Asset Oversight (HCAO) / Head of Investor Money Oversight (HIMO) which will be a Pre-approved Controlled Function, appointed under Part 3 of the Central Bank Reform Act 2010. 
• Firms will be required to create, document and maintain a Client Asset Management Plan (CAMP) / Investor Money Management Plan (IMMP) in order to safeguard client assets. The CAMP must be in place by 1 January 2016 for IFs and 1 July 2016 for FSPs.

If you have any client asset protection queries, please contact Jonathan Lew of our Financial Services team. We'd be delighted to hear from you.