Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Funds industry responds to regulator’s outsourcing concerns

Funds industry responds to regulator’s outsourcing concerns

The working group formed by the funds industry to respond to the regulator’s criticism about its use of outsourcing has published the outcome of its review.

In December 2012, the Financial Services Authority, as it was then, wrote to asset managers to highlight its concerns about their oversight of outsourced services and their resilience in the event of any provider’s failure.

In response an Outsourcing Working Group was formed – comprising fund groups, service providers and the Investment Management Association – which has now issued ‘guiding principles’ on outsourcing. These address three themes: oversight, exit planning, and standardisation.

‘As there are many types of outsourced relationships, we have specifically refrained from producing a checklist, as we recognise each firm has a bespoke business model,’ the working group stated.

The group has suggested that asset management firms now review their outsourcing agreements with reference to the guiding principles, and noted that the regulator is likely to revisit their arrangements.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter