The Irish Pensions Authority (IPA) has published information for trustees on the appointment of service providers to carry out more than one key function.

It noted that, in accordance with the IPA’s Code of Practice, trustees entering an outsourcing contract with a service provider must specify a named individual as responsible for the delivery of the key relevant function.

While Irish pension trustees are allowed to appoint the same service provider to deliver both the internal audit and risk management functions for a scheme, the named individuals responsible for the delivery of services within that entity must be different, and have distinct roles and resources.

Furthermore, the different key functions must be operated independently with appropriate safeguards to ensure that conflicts of interest are avoided.

The IPA added that trustees should be satisfied that the service provider has implemented the necessary practices and procedures to ensure independence of the internal audit function within its overall operations.

Trustees were reminded that they need to notify the authority of any arrangement concerning the outsourcing of a key function no later than four weeks after the making that arrangement and before the agreement in respect of that arrangement comes into force.

Guidance on how to notify the authority of key function holder appointments is available on the IPA’s website.

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