Liquidity Risk: A 2020 Priority

Liquidity Risk: A 2020 Priority

Firms must have appropriate systems, controls and governance to oversee and manage liquidity risk. With the New Year well and truly underway, regulators across the globe have started publishing their priorities for the year ahead. Unsurprisingly, liquidity risk appears to be high up on most of their agendas

FCA Assessment Of Value Part 5: The Us Approach – What Can Be Learned

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

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.

Introduction to Derivatives Use Reporting

Introduction to Derivatives Use Reporting

With the FCA derivative use reporting deadline fast approaching, it’s the perfect time to discuss the reporting requirements and how Fund-Axis can assist you in making your filings. In 2016, the UK Financial Conduct Authority (FCA) made changes to its Collective Investment Schemes (COLL) sourcebook. The changes introduced a new report which revised the Derivative Risk Management Process (DRMP) report and included the information required by FCA Rule COLL 6.12.3AR on derivatives/risk management process.

Is your active fund really a Closet Tracker_

Is your active fund really a Closet Tracker?

Closet trackers, also known as closet indexing or index hugging, refers to the practice of fund managers claiming to manage portfolios actively when in reality the fund stays close to a benchmark. The issues around ‘closet trackers’ form part of a broader issue on the effectiveness of investor disclosure and the legitimate expectations of investors in respect of the service provided by some asset managers.