17 Nov 2011
Nicola Smith, CEO of Gibraltar fund administrator Helvetic, has issued an outlook for 2012. She sees counterparty risk, the impact of AIFMD, and other regulations, as likely to have the greatest effect on industry in 2012.
- Counterparty failure can significantly impact performance and reputation, as the MF Global failure highlighted. Smith identifies a need to work with clients to ensure a solution is found.
- AIFMD impact will see funds incurring additional costs. Smith advises funds to avoid the hidden cost approach of charging additional fees in order to manage these changes.
- She predicts that regulators in 2012 will be looking closer at the investment objectives of funds to ensure all documentation and reporting are in line with regulatory changes. Smith highlights a need for managers to work closely with their fund administrators in order to ensure all reporting requirements are met.
Smith also offers a review of key talking points within the fund management industry in 2011. Namely, the increase in the amount of cellular companies being set up, the Weavering Macro fund Judgement against the directors of the Cayman Fund, and the battles being faced by onshore and offshore jurisdictions on the regulatory front.
- Smith says that the dramatic increase in the amount of cellular companies being set up in 2011 has allowed funds to launch new classes which are seen as a substantially cheaper option to setting up an entirely new structure.
- The ramifications of the Weavering judgement against the directors of the Cayman Fund will be the need for greater support for board members when it comes to issues relating to corporate governance. Board members will be actively encouraged to meet regularly in order to discuss issues.
- Of the new jurisdictions being introduced, Smith says that FATCA will pose the most immediate and significant challenge for global hedge fund managers in the coming months.
- Counterparty failure can significantly impact performance and reputation, as the MF Global failure highlighted. Smith identifies a need to work with clients to ensure a solution is found.
- AIFMD impact will see funds incurring additional costs. Smith advises funds to avoid the hidden cost approach of charging additional fees in order to manage these changes.
- She predicts that regulators in 2012 will be looking closer at the investment objectives of funds to ensure all documentation and reporting are in line with regulatory changes. Smith highlights a need for managers to work closely with their fund administrators in order to ensure all reporting requirements are met.
Smith also offers a review of key talking points within the fund management industry in 2011. Namely, the increase in the amount of cellular companies being set up, the Weavering Macro fund Judgement against the directors of the Cayman Fund, and the battles being faced by onshore and offshore jurisdictions on the regulatory front.
- Smith says that the dramatic increase in the amount of cellular companies being set up in 2011 has allowed funds to launch new classes which are seen as a substantially cheaper option to setting up an entirely new structure.
- The ramifications of the Weavering judgement against the directors of the Cayman Fund will be the need for greater support for board members when it comes to issues relating to corporate governance. Board members will be actively encouraged to meet regularly in order to discuss issues.
- Of the new jurisdictions being introduced, Smith says that FATCA will pose the most immediate and significant challenge for global hedge fund managers in the coming months.
