Chapter 3: Holding and Depositing Investor Money

1. As part of the assessment provided for in Regulation 81(6), the Central Bank expects a fund service provider to take into account how investor rights would be affected in the event of the insolvency of the fund service provider, or the third party, or both.
2. The Central Bank expects a fund service provider to clearly document in its Investor Money Management Plan (IMMP) the procedures it would follow to carry out the review required by Regulations 81(6) and 81(7).
3. Once the investor money is held in a third party collection account in accordance with the IMR, there is no restriction on a fund service provider operating a number of different third party collection accounts.
4. Investor money may only be held by a fund service provider in a third party collection account maintained by the fund service provider at a third party. A fund service provider may receive or identify at any stage that it is holding money where it is not clear if that money is investor money or there is insufficient documentation to identify the investor owning such money. If that is the case, the fund service provider shall first pay the money into a third party collection account.

Issued: 4 July 2023

Last revision: 8 April 2025