Supervision Process for Fund Administrators 

General

The supervision process for Fund Administrators mirrors the general supervision process of the Central Bank.  All authorised financial service providers, whether engaged in international or domestic activities, are expected to implement best practice.

Governance

Fund Administrators must have systems, procedures and policies in place to mitigate risk and monitor compliance with their internal policies. The role of the Central Bank involves oversight of the quality of the institution's corporate governance, risk management and internal control systems.

Supervisory Process

Our supervisory process is carried out by way of:

  • Analysis of returns submitted to the Central Bank
  • Risk-rating of firms
  • Engagement meetings in line with PRISM engagement model
  • Full Risk Assessment process
  • Themed inspections  

Fitness & Probity

A sound and effective fit-and-proper test is a critical component of the regulatory regime. To ensure the proper discharge of their responsibilities, it is important that Directors and Managers have the skills to manage a Fund Administrator.

“Fitness” requires that a person appointed as a Director or Manager has the necessary qualifications, skills and experience to perform the duties of that position. “Probity” requires that a person is honest, fair and ethical.

Before being appointed, a new Director or Manager must demonstrate that he/she meets the required fit and proper standards. The “fit and proper test” involves the completion of an Individual Questionnaire (IQ) by the applicant and by the appointing firm.

See more information on the Fitness & Probity requirements here.

PRISM

The Probability Risk and Impact SysteMTM (PRISMTM) is the Central Bank’s risk-based framework for the supervision of regulated firms.  For more information visit our PRISMTM section.