The revised Fund Manager Code of Conduct (FMCC) will be effective on 17 November 2018. How ready are fund managers for achieving compliance? This newsletter series will touch on some areas which we believe will present challenges for industry players, as well as highlighting some key considerations fund managers should take into account in their compliance journey.
The revised FMCC codifies a number of new and enhanced general requirements that are applicable to all fund managers. The sixth edition of our FMCC Newsletter Series focuses on four of these areas, being (i) newly codified requirements around conflicts of interest; (ii) enhanced obligations surrounding the appointment of delegates; (iii) heightened requirements over personal account dealing; and (iv) increased emphasis around prevention of market misconduct.
The fifth edition of our revised FMCC newsletter series focuses on enhanced codified requirements for Fund Managers, who have responsibility for the overall operation of a fund, over the custody of fund assets (fund in this context includes both collective investment schemes and discretionary accounts). Within the newsletter we touch on five core areas, including (i) what Fund Managers should consider during the evaluation of prospective custodians; (ii) a Fund Manager's obligation to ensure an appropriate custody agreement is in place; (iii) a Fund Manager's responsibility for monitoring the performance of a custodian on an ongoing basis; (iv) disclosure requirements to investors; and (v) obligations where self-custody of assets is adopted.
The fourth edition of our revised FMCC newsletter series focuses on enhanced codified requirements around risk management. Within the newsletter we highlight the five risk management areas where Fund Managers will need to review their existing policies and procedures. We also emphasise the requirement for Fund Managers to perform periodic stress testing as well as periodic reviews of the continued effectiveness of established risk management policies and procedures.
Our third edition focuses on two areas. Firstly, the newly enacted requirement for Fund Managers, responsible for the overall operations of the funds they manage, to ensure that an annual independent audit of those funds' financial statements is completed. Secondly, the existing requirement that a Fund Manager should maintain an independent function (internal or external) to review and report on the adequacy, effectiveness and efficiency of the Fund Manager’s management, operations and internal controls.
This second edition focuses on enhanced requirements for Fund Managers within the revised FMCC over their valuation policies, procedures and controls, including the requirement to appoint a functionally independent party to execute an annual review. It further builds on our outlined potential roadmap for industry players to follow on their path to complying with the revised FMCC.
This first edition focuses on some of the key requirements within the revised FMCC which are relevant to Discretionary Account (DA) managers. It further outlines a potential roadmap for industry players to follow on their path to complying with the revised FMCC.
Our experienced team of regulatory professionals are able to assist you in a range of areas to ensure your ongoing compliance with regulatory expectations:
Should you have any questions or would like to know more about our capabilities, please feel free to contact any of the contacts listed in the newsletter or in the Contact Us section below.