IA GUIDANCE ON ACD GOVERNANCE
Following the FCA's multi-firm review on Host AFMs, the IA and its Independent ACD Group published in September 2022 a Guidance document, based on the FCA's report. Although the review concentrated on Host ACDs, the FCA made it clear that its findings applied to all ACDs, regardless of business model and the IA's Guidance is therefore directed at all of its ACD member firms. It has been agreed that the Guidance will be reviewed as part of the IA's work on the implementation of the Consumer Duty and the appropriate aspects of the new rules will be incorporated into the Guidance, along with any other developments.
IA EVERSHEDS SUTHERLAND GUIDANCE ON FCA GUIDING PRINCIPLES ON ESG/SUSTAINABLE FUND DESIGN, DELIVERY AND DISCLOSURE
On 19 July, the FCA published its Guiding Principles on design, delivery and disclosure of ESG and sustainable investment funds. The IA, along with Eversheds Sutherland, have drafted this guidance to help members interpret the FCA Guiding Principles. The guidance includes commentary on the FCA principles, guidance on scope, timing of applying the principles to firms' investment processes, as well as a section on how we think the principles interact with SFDR. To add further value for members, the guidance includes some fictitious specimen funds that have been annotated to try and explain how the Principles may apply in practice. The document also includes a prospectus check list.
CHARITY AUTHORISED INVESTMENT FUNDS
Charity Authorised Investment Funds (CAIFs) are UK authorised funds which are set up exclusively for Charities. CAIFs will be authorised and regulated by the Financial Conduct Authority. Each CAIF will also be registered as a Charity with the Charity Commission for England and Wales.
The Investment Association, the Charity Investors Group and the Charity Law Association have produced a guide for managers wishing to set up a CAIF, including and a model trust deed for a CAIF.
MODEL DISCRETIONARY INVESTMENT MANAGEMENT AGREEMENT
GUIDING PRINCIPLES ON OUTSOURCING
Following the Outsourcing Working Group (OWG) Report published in December 2013, the group met again in 2016 to consider the report and whether any areas required further amendments or change. This amended version of the OWG Report contains all of the original contents plus some of the risk-based aspects of outsourcing activities to a third party, with practical examples for asset managers.
GUIDANCE ON ELECTRONIC INSTRUCTIONS
(Previously PAPERLESS RENUNCIATION IN AUTHORISED FUNDS)