FCA updates on asset management supervisory strategies

FCA has:

  • written a Dear CEO letter about its asset management supervision strategy. The letter outlines FCA’s view of the key causes of harm asset managers can post to their customers or the markets in which they operate, and highlights FCA’s supervisory priorities – ensuring effective liquidity management in funds, effective governance, the remedies identified in the Asset Management Market Study report, product governance, the Libor transition, operational resilience and Brexit;
  • written a Dear CEO letter about its alternative supervision strategy. FCA views the key causes of harm that alternative investment firms (essentially those involved with AIFs) can cause. It notes its supervisory priorities for these firms as reducing the risk of investor exposure to inappropriate products or levels of risk, CASS controls, market abuse, market integrity and disruption, AML and ABC, and, again, Brexit

Emma Radmore