capture entities that are effectively the discretionary decision-making mind in relation to an asset, or assets, of the CCIV (or a sub-fund of the CCIV). Portfolio management and investment risk management may be performed as part of a broader investment management function. However, it would not be appropriate to apply to the higher degree of independence to all activities that may fall within the broad categorisation of management’ as this may also capture other activities ‘investment – that are more administrative in nature. Managing foreign currency or bank deposits will be expressly carved out of the functions of management’ and ‘portfolio ‘investment risk management’ as these activities are administrative in nature. A degree of independence is required for the depositary in respect of any entity performing any other corporate functions in relation to the CCIV (that is, activities that are not management’ or ‘portfolio ‘risk management’). These other corporate functions are generally considered to be more administrative in nature, so the higher degree of independence is not required. The following illustrates the application of the different degrees of independence to the different relationships described in paragraphs 4.31 to 4.36 above. Figure 4.1: Relationships between the depositary, the CCIV and the corporate director and degree of independence required Entity performing corporate director functions Corporate CCIV director Investment Any Portfolio risk other management management function Depositary Higher Higher Higher Higher Lower Entity performing Higher Higher Higher Higher Lower depositary functions For the purpose of applying the different independence requirements, the various entities can be grouped in accordance with the following table.
capture entities that are effectively the discretionary decision-making mind in relation to an asset, or assets, of the CCIV (or a sub-fund of the CCIV). Portfolio management and investment risk management may be performed as part of a broader investment management function. However, it would not be appropriate to apply to the higher degree of independence to all activities that may fall within the broad categorisation of ‘investment management’ – as this may also capture other activities that are more administrative in nature. Managing foreign currency or bank deposits will be expressly carved out of the functions of ‘portfolio management’ and ‘investment risk management’ as these activities are administrative in nature. A degree of independence is required for the depositary in respect of any entity performing any other corporate functions in relation to the CCIV (that is, activities that are not ‘portfolio management’ or ‘risk management’). These other corporate functions are generally considered to be more administrative in nature, so the higher degree of independence is not required. The following illustrates the application of the different degrees of independence to the different relationships described in paragraphs 4.31 to 4.36 above. Figure 4.1: Relationships between the depositary, the CCIV and the corporate director and degree of independence required CCIV Corporate director Entity performing corporate director functions Portfolio management Investment risk management Any other function Depositary Higher Higher Higher Higher Lower Entity performing depositary functions Higher Higher Higher Higher Lower For the purpose of applying the different independence requirements, the various entities can be grouped in accordance with the following table.