Sun, Apr 26, 2015
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner