IRELAND: Central Bank Reviews Outsourcing Arrangements of Fund Administration Activities

Wednesday March 8 2017

The Central Bank has completed a review on outsourcing carried out by Irish regulated Fund Administrators.  Outsourcing is a key area in relation to operational risk and is now integral to the business model of a significant number of Irish Fund Administrators.

The Central Bank review focused on:

• The extent to which larger Irish Fund Administrators (the firms) have outsourced fund administration activities to global service providers.
• The governance and oversight arrangements in place within the Irish firms regarding outsourced fund administration activities.

The review found that outsourcing in larger Fund Administrators is extensive and continues to grow.  Certain good governance arrangements, were observed, where firms were adequately managing risks in relation to outsourcing.

The Central Bank has issued a letter to all Irish regulated Fund Administrators highlighting observations and recommendations to assist Fund Administrators who outsource fund administration activities. The letter identifies areas requiring enhancement, identifies incidents of non-compliance and makes a number of recommendations.

The information provided aims to support the development of consistent industry practices to assist in ensuring compliance by firms with the Outsourcing Requirements

Click on the link above for further details.