AOV • Funds-Axis Limited

Ouch! FCA delivers another blow to AFMs with Assessment of Value review

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 6 July 2021

Last week the FCA published the results of their review on ‘host’ Authorised Fund Management firms’ which concluded with the FCA wanting to see “significant improvements” with many currently failing to meet the FCA standards. This week, the FCA have issued their findings on the review of AFMs Assessment of Value reports. Unfortunately, this review does not provide any easier reading and delivers another huge blow to the industry.

Are you complying with the cost related provisions of the UCITS framework?

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 8 January 2021

Yesterday, ESMA announced that it will be launching a Common Supervisory Action (CSA) with national competent authorities (NCAs) on the supervision of costs and fees of UCITS across the European Union. The CSA aims to assess the compliance of supervised entities with the relevant cost-related provisions in the UCITS framework, and the obligation of not charging investors with undue costs.

During the CSA, national competent authorities will take into account the supervisory briefing on the supervision of costs published by ESMA in June 2020.

Regulatory Round-up: November 2020

Regulatory Round-upsBy Trevor Dempster 1 December 2020

The past month brought important developments on topics such as fund liquidity, costs and fees charged by fund managers, AIFMD, UCITS and Money Market Funds. Most notably, in the UK, HM Treasury published the responses to the consultation on the Overseas Funds Regime, and the Financial Services Bill…

Regulatory Round-up: October 2020

Regulatory Insights, Regulatory Round-upsBy Trevor Dempster 2 November 2020

Despite the continuing focus on the rapidly rising COVID-19 infections rates in the US & Europe, the looming Lockdown 2.0, and the impending, potentially contentious race for the White House, October saw regulators press ahead with the launch of several significant fund regulatory developments.

Regulatory Round-up: June 2020

Regulatory Round-upsBy Trevor Dempster 1 July 2020

This month’s regulatory round-up pulls together some interesting regulatory developments we have tracked throughout June. The past month brought a number of important developments, particularly on the EU Money Market Fund Regulation, with ESMA publishing updated reporting instructions, and translations to the MMF guidelines.

ESMA up the Ante on Undue Fund Costs

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 24 June 2020

ESMA recently published a supervisory briefing on the supervision by National Competent Authorities (NCAs) of costs applicable to Undertakings for the Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs). The briefing was response to the need to improve convergence across NCAs in the approach to undue costs.

ESMA Briefing on Supervision of Costs in UCITS and AIFs

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 8 June 2020

The European Securities and Markets Authority (ESMA) has published a supervisory briefing on the supervision by National Competent Authorities (NCAs) of costs applicable to Undertakings for the Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs).

FCA Assessment of Value Part 6: Wolf in sheep’s clothing – how to spot a closet tracker

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 19 December 2019

A number of key regulators including ESMA, the CBI and the FCA have reviewed the market for potential hidden “closet tracker” funds and published their findings, with a number of funds providing inaccurate information in their investor disclosure documents as regards investment strategy.

FCA Assessment of Value Part 5: The US approach – what can be learned

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 17 December 2019

While the FCA’s Assessment of Value (AoV) process is a new development in the UK market, a similar requirement on mutual funds has been in place in the United States for considerable time. The approach in the United States provides some useful comparisons to the new UK regime. The US fund governance model requires under Section 15c of the US Investment Companies Act 1940 for US fund boards to conduct an assessment on the fund managers using a number of factors commonly known as the Gartenberg Principles.

FCA Assessment of Value Part 4: Where Next?

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 27 November 2019

Whilst UK AFMs are currently busily engaged in the FCA Assessment of Value process of preparing their first reports, in this blog we give some thought as to where the FCA Assessment of Value requirements are likely to take us over the next few years.

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