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Key themes

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Key themes Hope.Harris@th…Wed 23/08/2023 - 15:08

Fund risk management

UCITS IV introduced substantial new requirements concerning the risk management process, both in terms of the AFM’s organisation and procedures, and the way in which it monitors specific exposures. These provisions replaced the Commission Recommendation in 2004 on the use of financial derivative instruments by UCITS schemes.

In 2016, the FCA introduced a standardised reporting template for reporting of derivatives use by UK UCITS Managers. More information on this report is available in UCITS Derivatives Use Report - FSA042.

The Directive on Alternative Investment Fund Managers (”AIFMD”) came into force on 21 July 2011. Member States were required to transpose AIFMD into national law by 22 July 2013. The Commission has also enacted delegated measures (Level 2). AIFMD imposes detailed regulation on AIFs as well as on AIFMs including requirements on matters such as the calculation and disclosure of leverage and risk management.

Fund Communications

Cost transparency 

We are a founder member of the Cost Transparency Initiative (CTI), which launched a new cost transparency framework in May 2019. This built on the recommendations of the Institutional Disclosure Working Group (IDWG). The CTI, which launched in November 2018, is an independent group supported by the Pensions and Lifetime Savings Association, the Local Government Pension Scheme Advisory Board and the Investment Association. You can find more information on the CTI webpage.

Pensions and retirement income

KEY THEMES

 

FUNDS REGULATORY FRAMEWORKS

  • UCITS
  • AIFMD
  • OEIC Regs
  • FCA Handbook
  • OFR and TPR?

FUND COMMUNICATIONS

FUND GOVERNANCE

  • Value Assessment
  • Non-UCITS EU Funds?
  • Money Market Funds?
  • AIFMD Review?

FUND DISTRIBUTION

FUND RISK MANAGEMENT

  • Risk Management and Measurement for UCITS and AIFs
  • UCITS Derivatives Use Report

PENSIONS AND RETIREMENT INCOME

  • investment rules for UK pension schemes (covering areas such as permitted links, trust-based pension scheme investment rules, illiquid investments, productive finance)
  • costs and charges for pensions (charge cap + transparency)
  • ESG/climate change for pensions - highlighting de facto obligations on managers + disclosure initiatives such as Mark's TCFD template
  • AMMS/CMA (historic but there is a lot of good material here I am keen to retain)
  • Retirement market regulation
  • European/global pensions regulation affecting distribution of investment products (mainly PEPP for now, but could expand in time).
 

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