The Financial Conduct Authority (FCA) has recently announced its intention to conduct a comprehensive review of the methodologies employed by fund managers in valuing private equities and other unquoted investments. This initiative reflects the growing importance of transparency and accuracy in the valuation practices within the investment industry.
Anticipated to culminate in a detailed report, this review signifies a proactive step by the FCA to ensure alignment with evolving market standards and regulatory expectations. By scrutinizing the valuation methods utilized by fund managers, the FCA aims to enhance investor protection and maintain market integrity.
Expected to unfold towards the year-end, this review holds significant implications for both fund managers and investors alike. It underscores the imperative for robust valuation frameworks that accurately reflect the underlying value of private equities and unquoted investments, thereby fostering greater confidence and trust in the financial markets.
As the regulatory landscape continues to evolve, market participants are urged to stay attuned to updates from the FCA and proactively engage in the dialogue surrounding valuation practices. This collaborative approach will be instrumental in fostering a resilient and transparent investment ecosystem that benefits all stakeholders.
#litigation#disputes#disputemanagement
About time. Waiting 5 years to find out if there's any there there might get some fund managers bonuses for their volatility smoothed sharpe ratios but it doesnt exactly aid investors or boost confidence in the sector.
Regulation within the private equity (PE) sector is a critical area that can significantly impact operations, investment strategies, and compliance requirements for firms. Colin Knight's emphasis on "Regulation" within PE underscores the evolving landscape of financial oversight and the importance of staying ahead of regulatory changes. When considering future regulations in private market investments and the role of regulatory bodies like the Financial Conduct Authority (FCA) in the UK, several factors come into play:
Future Regulatory Trends
1- Increased Transparency: There is a global trend towards increasing transparency in private market investments. Regulators may require PE firms to disclose more detailed information about fees, investment strategies, and fund performance.
2- Investor Protection Measures: The FCA, like other regulatory bodies, is focused on protecting investors, which may lead to stricter due diligence requirements, better disclosure of conflicts of interest, and enhanced governance standards for PE firms.
3- Environmental, Social, and Governance (ESG) Compliance: With the growing emphasis on ESG factors, regulators may impose more stringent requirements on PE firms to integrate ESG considerations into their investment processes and report on ESG-related outcomes.
4- Operational Resilience: Given the increasing complexity of the financial system, the FCA and other regulators may focus on ensuring that PE firms have robust operational resilience frameworks to manage financial shocks and stresses.
Trader | Expert Witness on Trading, Financial and Investment Disputes | Consultant | Investigator
The Financial Conduct Authority (FCA) has recently announced its intention to conduct a comprehensive review of the methodologies employed by fund managers in valuing private equities and other unquoted investments. This initiative reflects the growing importance of transparency and accuracy in the valuation practices within the investment industry.
Anticipated to culminate in a detailed report, this review signifies a proactive step by the FCA to ensure alignment with evolving market standards and regulatory expectations. By scrutinizing the valuation methods utilized by fund managers, the FCA aims to enhance investor protection and maintain market integrity.
Expected to unfold towards the year-end, this review holds significant implications for both fund managers and investors alike. It underscores the imperative for robust valuation frameworks that accurately reflect the underlying value of private equities and unquoted investments, thereby fostering greater confidence and trust in the financial markets.
As the regulatory landscape continues to evolve, market participants are urged to stay attuned to updates from the FCA and proactively engage in the dialogue surrounding valuation practices. This collaborative approach will be instrumental in fostering a resilient and transparent investment ecosystem that benefits all stakeholders.
#litigation#disputes#disputemanagement
Tip No. 4 Due Diligence:
Due diligence is paramount when evaluating alternative investment opportunities due to their complexity and lack of transparency. Investors should conduct thorough research, including analyzing the track record and credibility of fund managers, understanding the investment strategy and underlying risks, and assessing the potential rewards. Performing robust due diligence can help investors mitigate the risks associated with alternative investments and make informed investment decisions that align with their financial goals and risk tolerance. #CFP#CPWA#wealthmanagement#financialplanning
Are you an Investment Fund Manager with an independent review committee? Do you sit on an #IRC? If so, there's lots of new information for you in the latest Borden Ladner Gervais LLP (BLG) client alert, including a checklist of considerations you will want to review.
With special thanks to Alla Al-arabi for her assistance in preparing this important update.
#governance#investmentfunds#securitieslaw
Check out our new bulletin on independent review committees and key guidance you should make note of whether your an IRC member or an investment fund manager.
Are you an Investment Fund Manager with an independent review committee? Do you sit on an #IRC? If so, there's lots of new information for you in the latest Borden Ladner Gervais LLP (BLG) client alert, including a checklist of considerations you will want to review.
With special thanks to Alla Al-arabi for her assistance in preparing this important update.
#governance#investmentfunds#securitieslaw
This is an interesting article on how the private equity industry might address its current perceived lack of transparency.
The Global Investment Performance Standards (GIPS®) has long offered a proven framework to meet transparency expectations while enhancing credibility and investor trust. What’s more, voluntarily complying with the standards is a powerful statement of your commitment to transparency, accountability, and leadership in industry best practices. With that in mind, we can imagine that increased participation from private equity could potentially ease regulatory scrutiny.
From our perspective, compliance doesn’t have to be difficult. At Longs Peak, we make GIPS compliance straightforward and manageable, helping firms of all sizes navigate the process with confidence.
#PrivateFunds#Compliance#Transparency#PrivateFundAdviserRulehttps://lnkd.in/gdHUykRc
Bam 💥 - an absolute milestone for Income Analytics having LaSalle Investment Management on board! More and more companies are seeing the need and benefits of working with our proprietary risk scoring model.
Williams Jones Wealth Management has been ranked on the Forbes | SHOOK Research 2024 Top RIA Firms list. This Forbes ranking highlights 250 advisory firms that are dedicated to overseeing and preserving client wealth. We’re pleased to share that Williams Jones is ranked No. 73.
Read the full ranking and methodology: https://lnkd.in/gyRbJuW8#Forbes#TopRIAFirms#WealthManagement
[Third-party rankings should not be considered a guarantee of future results. No fee was required for participation or use of the rating. This material is provided for informational purposes only and should not be considered an offer or solicitation to purchase or sell securities. Investing involves the risk of loss that clients must be prepared to bear. For more information about us, please visit www.williamsjones.com.]
Chapter III of the AIFMD Regulation, specifically Article 19, outlines the requirements for the valuation of assets by Alternative Investment Fund Managers (AIFMs). It mandates that AIFMs establish appropriate and consistent procedures for independent valuation of the assets of each AIF they manage, in accordance with national law and the AIF's governing documents.
https://lnkd.in/e3vPT5nS
Our CEO Mike Carrodus, spoke with Financial News, about our survey of the largest Asset Managers, following the FCA’s latest Consultation Paper on Payment Optionality for investment research. We found opinions split on whether the industry would ‘rebundle’ investment research costs with execution fees, or continue to fund research from their own P&Ls, with many firms waiting to gauge the impact on early adopters before making a decision.
Read the full article here ➡ https://lnkd.in/e4d6ETbH#MiFIDII#FCA#InvestmentResearch
KnowRisk Consulting
9moAbout time. Waiting 5 years to find out if there's any there there might get some fund managers bonuses for their volatility smoothed sharpe ratios but it doesnt exactly aid investors or boost confidence in the sector.