Investment Business (IB) Review

CPA Ireland may authorise practising members to conduct investment business that is incidental to their practice business.
 
The Investment Business Regulations applicable to Investment Intermediaries are outlined in Bye Law 14.

Updated changes to Bye 14, will become effective from the 1st January 2024. The main changes are laid out as follows and are important to consider for 2024 reviews;

4.01- The monitoring cycle for a firm in procession of a category 1A will increase from a minimum of once in every six years to ten years.

4.01- Those holding the category 2(1) of authorisation will be required to have positive financial assets. This will supersede the existing capital requirements in place.

4.01-Similarly, those holding a category 2(2) authorisation will be required to have a minimum capital requirement of €125,000, this represents an increase from the existing requirements which differs for sole traders and partnerships. Those in this category will also be now subject to an annual monitoring cycle.
 
IB Review

The IB review of your firm, will examine the following areas;

•           Nature of investment business activities
•           Minimum Competency requirements (CPD)
•           Commissions, income from IB activities
•           Investment business files for client
•           Financial statements for the practice

There are two possible outcomes from this review;
 
Grade Action
Satisfactory No follow up action necessary.
Not satisfactory Where a significant number of areas of weakness or more serious problems are identified a detailed plan to address will be required to be provided and implemented.  A Quality Assurance Officer  may also  refer a case to the Director of Professional Standards or the Quality Assurance Manager or Practice Regulation Manager for further action in line with Bye Law 7.17.6.
No Grade Where it is not possible to assess the adequacy and appropriateness of the Investment Business records of the firm. This may occur where a member does not engage in the review. This is deemed  unsatisfactory and requiring remedial action.  This may result in referral of the matter to the Director of Professional Standards or Quality Assurance Manager or Practice Regulation Manager in accordance with Bye Law 7.17.6.  
 
For further guidance on IB authorisation and requirements click here.