The validation of asset prices applied to funds, particularly those assets requiring a fair value determination, have come into sharp focus as the fund industry continues its quest to ensure an accurate and transparent NAV process.
UK financial regulators clearly state that firms can outsource important aspects of their fund operations but cannot delegate the responsibility for accuracy and resiliency.
In line with global regulatory changes, the Central Bank of Ireland (CBI) has published cross industry guidance focused upon the use of Outsourced Service Providers (OSPs) [CP138], and the importance of strengthening Operational Resilience throughout the financial system [CP140].
The Commission de Surveillance du Secteur Financier (CSSF) has prepared Circular CSSF 18/698 to consolidate and clarify its current supervisory practices, including additional requirements, with regard to Luxembourg Investment Fund Managers.
Has your organisation started to consider how the Australian Prudential Regulation Authority (APRA)’s heightened focus on operational risk management through CPS230 might impact on your fund operations?