On 14 November 2023, Fund Boards Council (FBC) held its annual Chairs/CEOs Council meeting, attended by 25 Chief Executives and executive and independent chairs from the fund boards of authorised fund managers (AFMs). We discussed key aspects of the regulatory agenda relevant to fund boards with FCA Director Wholesale Buy-Side, Asset Management Department – Wholesale Supervision Camille Blackburn.
The in-person meeting, hosted by FBC corporate member Legal & General Investment Management (LGIM), forms part of FBC’s ongoing programme of discussion events with the regulator and FBC corporate members.
Camille Blackburn delivered the keynote address, followed by a ‘fireside chat’ discussion with industry veteran and Chair of FBC’s Advisory Council, Philip Warland. Camille’s speech provided valuable insights into the expectations of the regulator and the importance of open and honest communication between industry professionals and the FCA. She covered a number of areas of feedback given by firms in response to the FCA’s Discussion Paper (DP23/2 – Updating and improving the UK regime for asset management), including key areas of concern and also outlining how the FCA will be addressing these areas. Camille went on the outline some key focus areas for the FCA over the year ahead, such as Valuation of private assets and Liquidity.
Attendees of the event took full advantage of the opportunity to get the regulator’s opinion on a number of topics, such as the cost of Assessment of Value (AoV), the FCAs Liquidity work, cross-subsidisation, and the challenge of smaller firms having more limited resource to cover the volume of regulation.
After the regulator departed, the session continued with panel discussion, hosted by FBC Senior Adviser, Brandon Horwitz, in which Rhodri Mason, Chief of Staff, LGIM; Hamish Forsyth, President of Europe & Asia and board Chair at Capital Group and Jane Leach, Chair at J O Hambro Funds considered the wider implications of the regulator’s comments for fund board chairs and CEOs. The panel discussion, and ensuing attendee conversation, covered various topics related to fund governance, liquidity, consumer protection, and the future of the asset management industry. The participants discussed the challenges and consequences of regulations such as AoV and Consumer Duty and the meeting concluded with FBC setting out key elements of its agenda for supporting fund board directors in these areas in 2024.
FBC Corporate Members can read a detailed summary of the discussion in the Member Portal, along with recordings of FBC’s Digital Meetings with the FCA on topics such as feedback for fund boards from the Assessment of Value thematic review and directors’ responsibilities when it comes to ESG and Sustainable Investing.
