Fri, Apr 18, 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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an