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On 16 November 2017, the Securities and Futures Commission (SFC) published the conclusions of its consultation on Proposals to Enhance Asset Management Regulation and Point-of-sale Transparency, which included proposed amendments to (a) the Fund Manager Code of Conduct (FMCC) and (b) the Code of Conduct for Persons Licensed by or Registered with the SFC.
The SFC has agreed to a twelve month transition period before the revised FMCC takes effect on 17 November 2018.
Changes to the FMCC will have a significant impact on SFC-licensed fund managers. Our previous briefing is available here. In this briefing, we highlight the key implications of the revised FMCC for private funds and how we can help fund managers with the FMCC changes.
The revised FMCC will also impact discretionary investment management services that fund managers provide to clients, including client agreements and internal policies and procedures.
What you need to do
Although the effective date of 17 November 2018 for the FMCC changes is some way off, fund managers should begin the process of reviewing the impact of these FMCC changes on internal policies and procedures, fund documentation and relationships with investors and key service providers (e.g. custodian). In particular, for each fund:
How Deacons can help
We can assist with the following matters:
(a) advising on whether a fund manager will be considered to be ROOF;
(b) reviewing and amending the offering documents and constitutive documents of funds to meet the requirements of the revised FMCC; and
(c) preparing asummary of the securities lending, repo and reverse repo transactions policy (if applicable), risk management policy and liquidity risk management policy for disclosure in the fund’s offering document.
If you require our assistance on the above matters, please do not hesitate to contact us for further details.
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