21ST February is now the deadline for receipt of AIFM applications. Managers are urged to act as soon as possible.
The Central Bank of Ireland has reminded investment funds that the transitional date for compliance with the European Union’s Alternative Investment Fund Managers Regulations is 22 July 2014. The Central Bank is also keen to build an estimate of the number of funds likely to apply to be authorised before that deadline.
The Central Bank has also stated that 21 February is now the latest date for receipt of applications seeking authorisation as an AIFM, including internally managed AIFs. It is urging applicants to submit completed applications at the earliest opportunity. Read More…
Carne is pleased to announce that the Association of the Luxembourg Fund Industry (ALFI) has recently published the final version of the “Practices and Recommendations” aimed at reducing the risk of money laundering and terrorist financing in the Luxembourg fund industry.
The document was drafted in association with the Luxembourg Bankers’ Association (ABBL), the Association of Luxembourg Compliance Officers (ALCO) and the Luxembourg Association for Risk Management (ALRIM). It also incorporates comments provided by the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (CSSF).
The document reflects the most recent Luxembourg regulation 12-02 on the fight against money laundering and terrorist financing, as well as international standards such as related EU directives, FATF and the Wolfsberg recommendations. It provides practical guidance on the Luxembourg AML risk based approach, country risk assessments as well as due diligence measures to be applied to investors and distributors, and includes a comprehensive investor due diligence checklist. Furthermore, the document amends and replaces the previous ALFI recommendations published in February 2007.
We are also very pleased to inform our clients that Carne is represented and participates in this ALFI AML industry working group that has taken the leadership in developing these guidelines.
If you have further questions on the topic, please do not hesitate to contact:
Tel :+352 26 73 2335
E-Mail : email@example.com
Findings reinforce need for more transparency on part of Cayman Islands fund boards and directors.
The Cayman Islands Monetary Authority (CIMA) has published the results of the research it commissioned from Greenwich Associates earlier this year on hedge fund corporate governance, including the proposed introduction of a database of Cayman Islands fund directors. The survey also sheds light on the views of investors, fund managers, directors and service providers on the topic of effective fund governance.
The survey was completed by 57 hedge fund managers, 28 investors, 32 fund directors and 62 service providers.
- 53% of respondents (and 63% of fund directors) remain concerned that directors are not giving themselves enough time to devote sufficient attention to each fund board they sit on.
- 71% of investors still feel fund governance standards need to be improved.
- 86% of investors want to be provided with the total number of directorships held by each fund director; over half of fund directors and service providers agree.
- 54% of hedge fund managers believe corporate governance standards are currently ‘fit for purpose’ versus only 11% of investors. No investors rated hedge fund corporate governance standards as ‘outstanding’.
Full declaration and management of conflicts of interest is considered mandatory.
The UK’s Financial Conduct Authority (FCA) has published a Decision Notice against a UK Non-Executive Director (NED) that serves to highlight and clarify the regulator’s thinking on conflicts of interest, particularly as they relate to NEDs. In addition, the notice outlines critical opinions on the fiduciary role and responsibilities of NEDs when it comes to managing their own conflicts. The notice comes hot on the heels of the FCA’s Dear CEO Letter last year, which highlighted the failure of directors and officers within investment management firms to adequately police conflicts of interest.
The FCA said it would ban and fine Angela Burns for failing to disclose conflicts of interest to two UK mutual societies for which she served as NED and chair of their respective investment committees. The regulator stated that while serving as an NED, Ms Burns was soliciting an unnamed investment manager for consultancy work.
The vast majority of offshore hedge funds are registered in the Cayman Islands. In recent years the hedge fund industry has seen a continuous shift from high net worth individual investors to institutional investors, and these types of investors are set to increase their allocations to this sector of the investment management industry. It is a change that has brought forth a more demanding agenda for fund governance and oversight, catalysed by the recent controversial industry misconduct rulings such as Weavering, and there has been much revelation of poor and inadequate fund governance drawing public attention to the subject of board governance. Cayman Island ‘jumbo directors’, ‘Walmart model’ and ‘high volume, low touch’ governance approaches have forced industry stakeholders to rethink fund governance ‘legacy’ practises. Read More…
Funds Congress saw a record turnout from the UK and Irish funds community, with the event extended to a full day of presentations and panel discussions. Over 450 delegates came to hear about the latest developments in the global asset management industry.
Key Note Speaker: Gareth Murphy, Director of Markets Supervision at Central Bank of Ireland
We would like to thank Gareth Murphy, who delivered the key note address to open Funds Congress 2013. His comments focused on a number of key challenges the fund management is currently facing, of pertinence to both allocators and investment managers. The full transcript of his speech can be viewed here.