Background to the Changes
The Financial Conduct Authority's (FCA) recently published findings of its asset management market study have led to the announcement of a series of remedies for the concerns identified in its report. (For the full report, click here).
U.K. Authorised Fund Managers (AFMs) will be particularly interested in the findings of the final report which include the requirement for AFMs to appoint a minimum of two independent directors to their boards and for at least 25% of the board to be independent, non-executive directors.
Andrew Bailey, FCA CEO commented that they had, "listened carefully to the feedback we received in response to our report last November" and had "put together a comprehensive package of reforms that will make competition work better and help both retail and institutional investors to make their money work well for them". The FCA also revealed that they believe governing bodies should have a more defined role to increase accountability and to work for a better outcome on behalf of the investor.
The DMS Response
DMS Governance (DMS) welcomes and fully supports regulatory reform and policy changes that improve transparency and increase investor protection and as such will be providing a comprehensive response to the questions raised in Consultation Paper 17/18 ahead of the 28 September 2017 deadline. DMS has led the charge in European fund governance with our AIFMs, UCITS Management Company and MiFID solutions which astutely recognise the importance of clear guidelines to enable compliance with regulatory requirements and protects investors by ensuring proper governance is established.
The DMS Solution
The need for independent, non-executive professional directors has therefore never been more significant. To address the appointment of an estimated 480 independent, non-executive directors across the U.K. asset management sector, DMS Governance can provide AFMs with robust, institutional-quality governance solutions, delivered by industry experts and powered by the latest developments in FinTech and RegTech.
By utilising superior professional talent, advanced governance techniques, and industry-leading financial technology, DMS Governance can deliver experienced and skilled fund directors and governance solutions required to fulfil any independent non-executive director role. In addition to providing this key function, DMS can also provide the necessary institutional support and reporting needed to assist with discharging all legal and regulatory duties and obligations. Our team of experienced and industry-recognised professionals have leading expertise in fund governance, risk management, portfolio management, distribution, finance and operations, regulatory compliance and reporting requirements.
Our global infrastructure and market insight means DMS is best placed to support you and your business with the proposed FCA changes to the governance of AFMs and the evolving and ever-increasing regulatory requirements worldwide.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.