Chapter 11: Investor Money Examination

Who may conduct the Investor Money Examination?

  1. The Investor Money Examination (IME) may be conducted by the fund service provider’s statutory auditor or another external auditor. A fund service provider should provide the auditor with all information and explanations that the auditor requires for the purposes of conducting the investor money examination.

    The Scope of the Investor Money Examination

  2. In relation to the assessment of the Investor Money Management Plan (IMMP), a fund service provider should ensure that the auditor reviews the process undertaken by the fund service provider to assess the on-going appropriateness of the IMMP, including evidence of the steps taken by the fund service provider to test and maintain the IMMP.
  3. In addition to all other procedures that the auditor deems necessary for the completion of the investor money examination, subject to the considerations as set out within the auditor’s technical standard on auditing compliance with the Regulations, the Central Bank expects a fund service provider to engage with the auditor to seek, at a minimum, third party confirmations (external confirmations) for a representative sample of account balances held in respect of investor money, both at year-end and also on one other randomly selected date during the year.

    When any findings arise from the Investor Money Examination

  4. The assurance report prepared by the auditor following the Investor Money Examination should make provision for the fund service provider to comment and to set out actions it has taken, or will take, where the report has identified recommendations for remediation and to ensure that such remedial actions are submitted in writing to the Central Bank. The fund service provider should address those findings without delay. The auditor is not required to comment on the appropriateness of the fund service provider’s proposed remedial action.

Issued: 4 July 2023

Last revision: 4 July 2023