Central Bank Publishes Consultation Paper on Treatment,
Correction and Redress of Errors in Investment Funds.
On 9 September 2019, the Central Bank of Ireland
("CBI") published a consultation paper
("CP130") on proposed rules and guidance for the
treatment, correction and redress of errors in investment funds.
The full text of CP130 can be accessed here.
Executive Summary
What has been
issued?
A consultation on new rules and
guidance for dealing with errors in investment funds, including NAV
errors, investment breaches, fee errors and control breaches.
Will the proposals
materially alter the status quo?
Yes. If the proposals are followed
there will be increased responsibility, and potentially liability,
for boards falling within scope. The proposals also introduce new
requirements for the assessment and appropriate rectification of
errors.
