Mon, Mar 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

UK FCA finds asset managers are better prepared for service provider failure but not all apply proper oversight

Tuesday, November 05, 2013

Benedicte Gravrand, Opalesque Geneva:

The collapse of Lehman and the several bailouts that occurred in recent years highlighted the possibility of big brands becoming potential bankruptcies. So asset managers, including hedge fund managers, may be cautious when it comes to their service providers no matter how big the latter are, and could manage any risk that those service providers might present - especially as more hedge fund managers are now outsourcing various tasks to third parties for control and cost reasons, and about half of hedge fund assets are administered by bank-affiliated or bank-regulated financial institutions.

The UK’s Financial Conduct Authority (FCA, formally known as FSA), the country’s financial regulator, has just published the findings from a review of outsourcing in the asset management industry. The review assesses whether asset managers in the UK are effectively mitigating the risks relating to outsourcing, and focused on two risks: - Resilience risk: inadequate contingency plans to deal with failure of service provider; - Oversight risk: inadequate oversight of service providers.

The review found improvement in the management of resilience risk, but effectiveness of the oversight varies from manager to manager.

The FCA found last year, from an initial review ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He