J.P. Morgan Administration Services Limited

BACKGROUND JPMAS is an investment business firm authorised by the Central Bank under Section 10 of the Investment Intermediaries Act 1995 to provide fund administration services. It is a wholly owned subsidiary of J.P. Morgan Bank (Ireland) plc, which is itself an ultimate subsidiary of J.P. Morgan Chase & Co, incorporated in the United States. JPMAS was first authorised by the Central Bank on 9 August 1996. Outsourcing is core to the business model of JPMAS, with a significant proportion of its fund administration services currently outsourced. Outsourcing is a mechanism that allows an Irish regulated fund administrator to use a third party, which can be an affiliate, to perform fund administration activities that would normally be undertaken by that fund administrator in Ireland. It allows regulated firms to reduce costs or provide services more efficiently by accessing skills and technologies that may not available within the firm. It can also allow firms to provide ‘round the clock’ services to clients across different time zones. However, there are risks associated with outsourcing of regulated activities, and the Central Bank plays an important role in ensuring that firms minimise potential risks. For example, fund administration firms must seek the prior approval of the Central Bank to outsource regulated activity so that the Central Bank can effectively supervise and monitor the extent to which firms are identifying, mitigating and managing these risks.