Thu, Apr 24, 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. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  4. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  5. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac