Fund Oversight under the FCA - 22/11/2017
The Training Environment For Financial Services

Fund Oversight under the FCA

22 Nov 2017, London

9:30am to 4:30pm

Outline & Objectives

In the recent Thematic Review of Outsourcing in the Asset Management Industry, the FCA were concerned that only a few managers were able to demonstrate high standards of oversight across their outsourced activities.

This practical one day workshop is intended to provide staff with the appropriate knowledge and skills to provide effective fund oversight. The programme will cover all  aspects of fund management and operations with particular emphasis on high risk areas in fund accounting and transfer agency. It will include case studies of pricing errorsinvestment & borrowing power breaches, rectification programmes and failures of fund governance together with examples of oversight questionnaires and reports. The particular concerns of the FCA when reviewing fund managers will also be examined

Making extensive use of CASE STUDIES and practical EXAMPLES, the course will provide answers to such key questions as:

  1. How much can be outsourced?
  2. What controls does the FCA expect?
  3. How to carry out oversight of third parties?
  4. How can pricing errors be prevented?
  5. What controls does the depositary expect?
  6. What to do for a pricing error?
  7. What should be in the oversight questionnaire?
  8. What is an effective fund governance structure?
  9. How many staff are needed?
  10. Where are the key risks?
  11. What should be in the service level agreement?

Who will benefit?

This event will be of value to anyone with fund oversight responsibilities, including Operations and First Line of DefenceRisk Managers, Compliance Monitoring Teams and Internal Audit at Fund Managers or TPAs.

The course assumes some previous knowledge of funds. For staff new to funds, our Introduction to Authorised Funds is recommended as a precursor.

SPECIAL SAVING: attend both events for only £795 +VAT. 
Please call 0330 303 9779 or email for more information.

 

Course Leader:

Vivien Crayston is a management consultant with 26 years’ experience of transfer agency and fund accounting for both traditional and hedge funds. She has occupied senior fund administration positions in South Africa and London and has been a management consultant for over 10 years,advising both large and boutique asset managers. Vivien is a Chartered Fellow of the Chartered Institute for Securities and Investments and holds status of MSCI.

Course Programme

Session Content
Fund governance
  • Oversight by the Board
  • Oversight of third parties
  • The importance of challenge
  • Fund governance and UCITS IV
  • Oversight organisation: first and second lines of defence
Fund documentation issues
  • The prospectus
  • KIID
  • TER & OCF
Fund administration - the Transfer Agent
  • Dealing
  • Settlement
  • The register
  • Box management
  • What is client money?
  • Where can things go wrong?
Fund administration - the Fund Accountant
  • NAV calculation
  • Income & expenses
  • Distributions
Developing an effective control environment for fund accounting
  • Controls over valuation of individual securities
  • Income and expense accruals
  • Daily fund level checks
  • Periodic checks
Pricing errors
  • What is a pricing error
  • How pricing errors arise
  • Key controls for early identification
  • Process for resolution of pricing errors
  • Compensation calculations
Investment & Borrowing Powers
  • UCITS -v- NURS
  • Eligible assets
  • Investment restrictions
  • Advertent and inadvertent errors
  • Monitoring investment & borrowing powers
The RDR & share classes
  • The impact of the RDR
  • Commission and rebates
  • Share classes
  • Key issues with processing share classes
Offshore funds
  • UK -v- Ireland & Luxembourg
  • Issues when overseeing offshore fund ranges and third parties
  • Reporting fund status
  • Taxation in the UK
Governance of fund accounting
  • Service Level Agreements
  • Identification of key SLAs
  • Key Risk Indicators
  • Key Performance Indicators
Risk management
  • What are the key risks?
  • The Integrated Risk Assessment
  • Portfolio risk management
  • Risk mitigation
  • Heat maps
Role and expectations of the Depositary
  • Review of the manager's systems and controls
  • OTC  derivative valuation
  • Pricing errors
  • Dilution policies and FVP
Oversight of Third Parties
  • Three Lines of Defence
  • Visits to the TPA
  • Compliance monitoring plans
  • Risk based reviews
  • Examples of oversight questionnaires and reports
FCA Review of Outsourcing Oversight
  • Key concerns of the regulator
  • Evidencing good fund governance
  • Expectations of fund oversight teams
  • The Outsourcing Working Group

This course can be delivered in-house at a time and location to suit your business and tailored to suit your people and organisation. We can also create bespoke training when something very specific is needed.Please contact us to discuss your requirements in more detail and at no obligation.

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