TRAINING - Lunch & Learn

Our low cost Lunch & Learn Sessions, can be held in your office and at your convenience. For further information, contact events@funds-axis.com.      (Back to Training Homepage)

• Senior Management Responsibilities and the FSA’s “more intrusive regulatory approach"
• UCITS IV – the opportunities for product rationalisation and cost efficiency
• TCF and Product Development
• FSA expectations for ICAAP, liquidity management and reverse stress testing
• UCITS and Hedge Funds
• Enhancing Governance, delivering cost efficiency and reduction of risk
• Understanding Counterparty Risk

Senior Management Responsibilities – the FSA’s “more intrusive regulatory approach”

In this briefing for Senior Managers and Boards, we consider the FSA’s expectations as regards the steps those performing a significant influence function must take to ensure that the business of the firm is organised and controlled effectively. We consider the FSA’s “more intrusive regulatory approach” towards those performing significant influence functions and the impact of the FSA’s strategic decision to carry out more enforcement action against senior managers as a means of achieving “credible deterrent.”

 

UCITS IV – the opportunities for product rationalisation and cost efficiency

In this session, we consider the opportunities ahead for rationalisation of fund ranges and management company activities. We consider the goals, drivers and success criteria that will enable you to fully evaluate the opportunities for achieving product efficiency through fund mergers, master feeder structures and management company passporting.

We also consider the improved fund distribution opportunities and introduce the UCITS IV Management Company requirements that will apply to all firms, whether or not they take advantage of the UCITS IV efficiency package.

 

TCF and Product Development

Dan Waters, Asset Management Sector Leader at the FSA has recently spoken of the FSA’s increased focus on governance, design and oversight by product provider firms in respect of the product development process. He referred to the need for improved scenario and stress testing of products and to the respective responsibilities of product providers and distributors. Specific mention was reserved for absolute return funds.

In this session we consider the responsibilities of product providers and the practical steps that firms should be taking to ensure that they have a robust governance framework in place in respect of product development.


FSA expectations for ICAAP, liquidity management and reverse stress testing

The FSA has made it clear that they expect firms to improve their stress testing and develop, implement and action a robust and effective stress testing programme which assesses their ability to meet capital and liquidity requirements in stressed conditions, as a key component to effective risk management.

In this session we introduce the ICAAP process and Pillars I, II and III. We consider the FSA expectations for ICAAP submissions and emerging best practice as regards stress tests and scenario analysis. We consider the key messages from the new SYSC 20 on Reverse Stress Testing and from BIPRU 12 on Liquidity Risk Analysis.

We also consider the FSA’s expectations as senior management engagement throughout entire ICAAP and liquidity management process. Finally, we consider what Firms should expect from the FSA’s supervisory review process (SREP).


UCITS and Hedge Funds

In this session, we consider the opportunities for hedge fund managers to launch UCITS funds. We consider the UCITS investment powers and derivatives exposure limits and how UCITS can accommodate 130/30, absolute return strategies and enable exposure to commodities, properties and hedge funds.
 

We consider the advantages of UCITS, including as regards distribution and avoidance of the AIFM Directive. We also consider the key decisions to be taken when establishing your UCITS funds and an overview of steps involved in launching a UCITS.

 

Enhancing Governance, delivering cost efficiency and reduction of risk

In this session, we consider how, through an integrated approach to governance, risk and compliance and enterprise process management, firms can meet the current regulatory imperatives for improving governance and risk control whilst also delivering process efficiencies and reduction of cost.

We consider how firms can demonstrably meet the FSA’s expectations of firms and of those performing significant influence functions, without experiencing sharply increasing costs of compliance.


Understanding Counterparty Risk

Counterparty risk management has become an increasingly significant part of firms' business operations as concerns increase about the negative impact of default by key counterparties.
 

In this session, we consider where counterparty risk arises in trading, settlement and custody processes. We look across asset classes from equities and bonds, to derivatives, money market instruments, cash and deposits and also to stock lending transactions. We consider the key operational and compliance process controls that organizations should have in place to ensure that counterparty risk is properly managed and not unduly assumed; this includes consideration of collateral management. Finally, we consider how to measure counterparty exposure on particular transactions and the particular challenges posed by illiquid and difficult to value instruments.
 

All of the above is all related back to the UCITS regulations.