Regulation and Compliance - Articles & White Papers
Reports and white papers on investment regulation and compliance issues. Amongst the research in this investment compliance and regulation section are white papers on AIFMD (Alternative Investment Fund Managers Directive) and Solvency II - particularly the practical implications for fund managers and insurers. Reports discussing the impact of regulation on fund management... companies, and the operational challenges this presents, have been particularly well received, whilst regulatory primers (for instance providing an overview of who regulates whom and how) have also been well read. Other surveys and articles cover financial regulatory policy, hedge funds regulation, investment regulation, risk management, IFRS financial statements, GIPS performance reporting and the future of investment compliance for asset owners.
In a 26 June 2019 letter to Jay Clayton, Chair of the US Securities and Exchange Commission (Commission or SEC), CFA Institute, together with the Healthy Markets Association (Healthy Markets) and the Council of Institutional Investors (collectively, the Coalition), conveyed two recommendations to address issues raised by the…
Securities lending plays an important role in today’s global capital markets. It has long been a fundamental component of financial markets as a means of meeting settlement and collateral requirements, as well as providing vital liquidity to secondary markets. This paper acts as a guide for institutional investors.
The asset and fund management industry has grown significantly in the last decade and its importance to the world financial system is increasingly recognized. The industry and regulators are coming under pressure from a range of “external” voices – demanding investors and consumer groups, clamoring political and economic…
This memorandum discusses the principal aspects of the U.S. regulatory regime applicable to non-U.S. asset managers and funds and the legal issues a manager must consider in seeking to attract U.S. investor capital. More practically, this memorandum provides a framework, based on a series of exemptions from that regime, to…
Similar to the software updates needed for Y2K in the late 90's, the present financial system also has a bug in it. Trillions of loans, securities, and derivatives are currently being priced off of an index that has been deemed faulty and set to expire at the end of 2021. As computer programmers in the 90's had to update…
The FCA has carried out work on cryptoassets, both as part of a broader UK Cryptoasset Taskforce and independently to achieve our objectives. This policy statement is the next step in the FCA’s work on cryptoassets and sets out details on where different types of cryptoassets might fall in the regulatory perimeter.
Upcoming fundamental changes to reference rates will affect all areas of the financial industry. Particularly buy-side firms have a broad exposure to reference rates and will be facing many operational complexities and challenges when implementing the changes. Despite regulators not enforcing implementation of the changes…
This paper outlines the drivers behind the need to re-shape the economy into one that is more sustainable, the main initiatives shaping the regulatory landscape, the challenges and limitations inherent within those policies and frameworks, and possible next steps.
From the end of 2021, most Interbank Offered Rates (IBORs) will be phased out by regulators and replaced by new alternative reference rates (ARR). This has significant consequences for most investment management firms, with many implications only just emerging. Understanding the impact for each firm and taking the right…
Risk managers remain focused on liquidity risk, as the 2008 financial crisis showed how liquidity can deteriorate quickly. But could investors underestimate their risk by looking solely at changes in bid-ask spreads and overlooking market impact?
Ten years on, the major economies that bore the brunt of the Great Financial Crisis have largely recovered. Economic growth has been restored, unemployment rates have been drastically reduced and the banking system's safety buffers have been greatly strengthened. Policymakers' swift, forceful and determined…
Securities lending plays an important role in today’s global capital markets. It has long been a fundamental component of financial markets as a means of meeting settlement and collateral requirements, as well as providing vital liquidity to secondary markets. It supports important hedging and investment strategies and helps…
There has been a noticeable proliferation of Alternative UCITS vehicles coming to market over the past decade. Where an emerging manager has the tools to create a UCITS structure, the opportunity set is ripe - enter the UCITS partnership platform. This is a concept whereby a firm with the regulatory, legal and often…
The results of the recent European elections, in which Green politicians made a surprisingly strong showing, were just the latest indication that Europeans’ attitudes to environmental issues are shifting.
As the European Union gets ready to identify its strategic priorities and to plan its policies for the 2019-2024 legislative term, it is important to reflect on the various forces that are re-shaping many aspects of the economy and the policy landscape. These include an increasingly competitive global economic environment,…
After a long wait, we have finally received an update on the latest European Market Infrastructure Regulation (EMIR, Regulation (EU) No 648/2012) review, the so-called “REFIT” (Regulatory Fitness Test). With changes affecting all areas of EMIR and hence many market participants, it is crucial that firms analyze the impact…
