The FCA have published a letter outlining the key risks that custody and fund services firms need to manage in order to protect investors and the integrity of the markets in which they operate. In the letter, the FCA outline the necessary action they expect firms to take to ensure that risks are appropriately mitigated.
As discussed in previous blogs, later this year new FCA rules for open-ended funds investing in inherently illiquid assets enters into force. The new rules concern non-UCITS retail schemes (NURS) that invest in inherently illiquid assets. Although the new rules are relevant to anyone with an interest in open-ended investment funds that are likely to hold illiquid assets, here we will be focusing on the enhanced oversight of depositaries.
On 30th October 2018, following the opinion issued by the European Securities and Markets Authority (ESMA) on asset segregation and application of depositary delegation rules to CSDs, the European Commission published the following delegated regulations…