Regulation
Publicising enforcement pursuance
The Financial Conduct Authority (FCA) is consulting on a proposed new approach to publicising enforcement investigations and simplifying the Enforcement Guide. Ignites Europe’s reporting includes findings from a survey by law firm Simmons and Simmons on the response from asset managers. The consultation is open until 30 April 2024 to provide formal feedback.
Valuation variation
The Commission de Surveillance du Secteur Financier (CSSF) has published a circular updating its previous rules on valuations, which will now be applied to a wider range of products, including alternative investment funds and European long-term investment funds. Ignites Europe reports on the key points here.
In further news on valuations, as supervisors in not only Luxembourg, but the UK, Ireland, and France too have been probing private asset processes in recent months, Ignites Europe carries an article on concerns raised over the robustness of valuations in private markets.
Gender pay – mind the gap
Following this year’s disclosures, Financial News highlights the biggest gender pay gaps among top City firms, ‘showing that diversity efforts to bolster the number of women in the senior ranks are still falling flat’.
Responsible Investment / ESG
Collusion illusion
New Morningstar research assesses the proxy voting of 60 asset managers and owners, including 50 signatories of Climate Action 100+, following claims of collusive behaviour among members of the initiative. Read the findings here and the Ignites Europe take here.
Market News
Dual role disbursement
UK activist investor, Bluebell Capital Partners, has put a binding resolution on BlackRock’s annual proxy ballot that would amend the corporate bylaws to require the board chair role be independent of the chief executive, the joint role that Larry Fink currently holds. It also wants more board oversight of the $10tn money manager’s approach to sustainable investing. Read the details in the Financial Times (FT).
Another joint role in the spotlight sees proxy advisers Glass Lewis and ISS recommending that shareholders vote against, or abstain, from voting on Martin Gilbert‘s re-election as he effectively holds the role of dual chairman and chief executive officer at AssetCo. Read more on the advisers’ focus on the directorship and comments that the firm’s corporate governance practices are “not in line” with “best practice” in Ignites Europe here.
Clipped hedges
Hedge funds are coming under pressure from low-cost competition and higher interest rates. Read the details in the FT.
Taking tokenisation forward
The Technology Working Group, established under the UK government’s Asset Management Taskforce, has published its second report, building on a blueprint for fund tokenisation. The report provides a “clear pathway” to implement fund tokenisation, “whether that is a baseline-model compliant proposition or one that uses a testing option to progress a specific use case”. Ignites Europe reports that The Treasury and FCA are now offering support “through appropriate channels” for other use cases.
All for AI integration
Mercer Investments has reported the findings of its AI in Investment Management Survey assessing the current scope of AI integration and use cases across global managers’ investment processes and strategies. Overviews of the key findings available in Ignites Europe and Investment News.
Efficient advice
Chief executive officer at abrdn Adviser, Noel Butwell, highlights the cost of delivering advice in Money Marketing. He unpacks his thoughts on why ‘to future-proof our industry, we’ll need to prioritise efficiency. And to unlock greater efficiency, the sector needs to focus on better integration.’
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