An increase in global regulation has subjected fund managers and their outsourcing partners to greater scrutiny over NAV oversight and resilience. Although the Asset Management industry, including ManCos, continued to operate smoothly and without interruptions to the challenges raised by Covid, they did face a number of obstacles.
Challenges facing ManCos – more regulations, more regulatory change, and more scrutiny than ever before (Part 1)
The pressure is rising on the ManCo industry – Management Companies (ManCos) are dealing with more regulations, and more regulatory change than ever before. This constant churning of regulatory change, coupled with increased scrutiny from regulators has led to a complex, pressured regulatory environment. However, this increased scrutiny is not the only challenge facing Mancos!
You’ve heard of FinTech, you’ve heard of RegTech, but have you heard of ManCoTech? It’s the latest “buzzword” in the European investment and compliance community. So what exactly is ManCoTech and why is it gaining such prominence?
On 30th June, the Financial Conduct Authority (FCA) published a review of Host Authorised Fund Management Firms. The review, which was carried out between Q4 2019 to Q4 2020.
This week we return to our refresher series on liquidity risk rules around the world, and in particular, the rules in the United States. With the COVID-19 vaccine rollout well underway, and the end of crisis in sight, we thought we would look back at how the volatility last year caused by COVID impacted the US market and compliance with SEC liquidity rules.
On Wednesday, the Securities and Exchange Commission (SEC) approved 3 to 2, the 458 page derivative use rules aimed at enhancing the regulatory framework for derivatives in the U.S. The Investment Company Act limits the ability of registered funds and business development companies to engage in transactions that involve potential future payment obligations, including obligations under derivatives such as forwards, futures, swaps and written options. The new rules, which apply to mutual funds, exchange-traded funds (ETFs), close-end funds, as well as business development companies, will permit funds to enter into these transactions if they comply with certain conditions outlined below, which are designed to increase investor protection.
Last week we took a brief look at the liquidity risk management regime in Hong Kong. This week, moving slightly southwest, and staying in the same continent, we review the liquidity risk requirements in Singapore. In 2018, the same year Hong Kong made amendments to its Fund Manager Code of Conduct, the Monetary Authority of Singapore (MAS) issued new Guidelines on Liquidity Risk Management Practices for Fund Management Companies (Guidelines).