Regulation
The Financial Conduct Authority (FCA) is due to launch its post-Brexit Overseas Fund Regime (OFR) on the sale of EU-domiciled funds to UK investors in April 2024. Details on equivalence arrangements and the regime’s criteria are yet to be provided, but the recent commentary from Mhairi Jackson, policy lead in asset management at the FCA, is in Ignites Europe.
The 2024 regulatory agenda is one of the topics our keynote speaker, the FCA’s head of asset management supervision and policy Camille Blackburn, will be discussing at our forthcoming FBC Chairs / CEOs Council this month.
Further details are here. Attendance is by invite only.
And in other post-Brexit efforts, the Bank of England, FCA, European Central Bank and EU supervisory authorities came together in October for the first meeting of the joint EU-UK Financial Regulatory Forum. More details are in Ignites Europe on the co-operation.
Consumer Duty complaints
The implementation of Consumer Duty in July has resulted in an uplift in whistleblower allegations over related issues, Ignites Europe reveals. The article also highlights the Financial Ombudsman Service’s expectation of an increase in complaints.
Private probing
Against a backdrop of growing concern from global regulators about the potential for shocks in private assets, the FCA is expected to begin its valuations review this year according to the Financial Times (FT).
Retail rumpus
The European Parliament is due to give its final vote on the European Commission’s unified retail investment strategy at a plenary Strasbourg meeting in February 2024, but only if the European affairs committee manages to reach a compromise deal in January. Investment Officer has an overview of the ongoing debate and potential investor impact.
Sustainable Investment / ESG
Sizing up social
The Taskforce on Social Factors (TSF), under the sponsorship of the Department for Work and Pensions (DWP), has released a guide for industry consultation with more than 30 recommendations for the UK pensions sector about how it can better incorporate social factors into investment decisions. The deadline for feedback is Friday 1st December.
ESG evidenced
The Hong Kong Securities and Futures Commission (SFC) is sponsoring a new working group to develop an industry-led, globally consistent, and interoperable voluntary Code of Conduct for ESG data and ratings providers. The International Capital Market Association (ICMA) is the secretariat. Read the details in the ICMA announcement and SFC announcement
Market News
Property plunge
M&G and Canada Life are the latest to announce the shuttering of their open-ended property funds, leaving 12 constituents in the IA UK Direct Property sector. Read more in Portfolio Adviser. However, Investment Week reports this has failed to spark investment platform provider interest to adopt the FCA’s Long Term Asset fund(LTAF).
Client-directed consequences
Tumelo has published a new white paper, ‘The Role of Client-Directed Voting in Stewardship’ with industry expert commentary on client-directed voting, and subsequent influence in stewardship outcomes.
UCITs uncovered
ICI Global has produced its annual report on ongoing charges for UCITs in the European Union, identifying a reduction in operational charges among its findings. Read the report, or a snapshot in Investment Officer
Governance
Remuneration ruminating
Hawksmoor Investment Management mulls over the talent pool and renumeration of independent directors of investment companies. Read the full article.
If you’re interested in benchmarking your iNED remuneration arrangements, the FBC iNED Remuneration Study analyses detailed figures provided directly from asset management firms on the fees paid to independent directors sitting on Authorised Corporate Director (ACD) boards in the UK. The study aims to provide participating firms with benchmarked data and insights to help inform their own compensation decision-making.
People
Former Jupiter global distribution boss Phil Wagstaff has joined Perpetual, J O Hambro’s parent board, as a Non-executive director, Investment Week reports.
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