New Funds Supervision Team

Author:Mr Harvey Knight, Kirsten Lapham and Colin Smith
Profession:Withers LLP

In a speech given by William Amos, director of wholesale banking and investment management, the FCA has announced, that it is creating a fund authorisation and supervision team. The speech focuses on the need for the FCA to ensure investors are receiving the right outcomes from their investments and on the expectations the FCA has of investment managers.

The remit of the new fund authorisation and supervision team is broadly:

to improve the FCA's internal systems and processes to be more efficient in delivering high quality scrutiny of new funds and changes to existing funds at the gateway to enhance the protection of investors throughout the fund's lifecycle One of the themes identified as a particular area of interest was in valuation and liquidity management. As a result, the FCA will be using property funds as case studies to explore how firms deal with assets that can be difficult to value and where fund liquidity needs to be carefully monitored and managed.

In light of this new separate fund supervision team firms should therefore consider whether their internal processes adequately cover the whole fund product life-cycle. For example, by regularly checking that:

the fund is compliant with the investment mandate there is appropriate transparency and disclosure to investors the investors' interests are best served throughout the fund life-cycle all the decisions made, manage...

To continue reading