Supervision of authorised funds

Find out how our supervision of UK authorised funds protects investors and maintains a competitive market environment.

We monitor authorised funds to ensure they are being managed and overseen in the best interest of investors, as well as checking compliance with the relevant rules in the:

NURS and QIS funds are also subject to additional requirements under the Alternative Investment Fund Managers Directive (AIFMD).

What you should consider

Authorised fund managers, depositaries and trustees should be considering:

  • Is the fund being managed in line with the stated investment objectives?
  • Is there the appropriate transparency and disclosure to investors?
  • Where benchmarks are used, are they appropriately described?
  • Are the investors’ interests being best served throughout the fund’s life-cycle?
  • Are conflicts of interest being managed and decisions being made to produce the best possible outcome for investors?
  • Is there effective liquidity risk management and oversight?

Furthermore, authorised fund managers will be expected to consider the value their funds offer when conducting their annual assessment as outlined in Policy Statement 18/8.

What we will consider

We aim to identify risks early so investors are better protected and market integrity maintained, ensuring the UK remains an attractive fund market.

Our supervision work is informed by data analysis, which helps us build a clearer picture of the UK authorised fund population. As a result, we target our supervision work on funds that have the potential to pose heightened conduct risk.

By focusing on funds we cover firms of all sizes. Our aim is to identify issues as early as possible to minimise detriment.

See the findings from our reviews of derivative reporting and disclosure, and valuation and liquidity oversight and liquidity management for investment firms: good practice.

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