Selected regulatory updates of interest to the funds and asset management sector. See also our Related Materials links for regulatory updates of broad application.
The Financial Conduct Authority (FCA) has published its findings following a review of the processes used by different authorised fund managers (AFMs) when they carry out assessments of value (AoVs or Value Assessments) for the funds they operate. The FCA found that most of the AFMs reviewed had not implemented the AoV arrangements it expects to comply with its rules. Many had not implemented assessments meeting the minimum consideration requirements and several practices fell short of the FCA's expectations.
The FCA states that each AFM Board should consider this review and how they should apply it to the way the AFM conducts future AoVs. Where necessary, the AFM should implement appropriate changes to address shortcomings. The FCA warns that it expects to find firms complying fully with its rules when the FCA next reviews them. It says that this will be within the next 12 to 18 months. The FCA will consider other regulatory tools if it finds firms are not meeting the standards it expects to comply with its rules.
Authored by Yvonne Clapham
Download the full bulletin of regulatory news for financial institutions, 9 July 2021
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