Wed, Oct 1, 2014
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

Banner

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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is