This policy statement sets out our final rules and guidance to address some of the findings of the asset management market study, focused on the duties that authorised fund managers have as the agents of investors in their funds.
This policy statement responds to the feedback we received to CP17/18 (PDF) which sought views on changes to the governance arrangements for authorised fund managers as well as other technical changes to improve the fairness of how investors in funds are treated.
It feeds back on a related proposal about how our changes work with the Senior Managers and Certification Regime discussed in CP17/18, but formally consulted on in CP17/25.
It explains the changes we have made to our proposals and sets out final rules and guidance.
The new rules we have made are intended to require authorised fund managers to focus more on their duties as agents of investors in their funds.
They are part of a package of measures which we have introduced to address weaknesses identified by our asset management market study.
The revised non-Handbook guidance related to share classes (FG18/3) is effective immediately. The new Handbook rules and guidance will come into effect in between 12 and 18 months’ time.
We have also published a second consultation paper (CP18/9) proposing further rules and guidance, focused on how authorised fund managers communicate with investors.
Who this applies to
- UK authorised fund managers (in respect of their management of authorised funds)
It will also interest delegated portfolio managers, depositaries of authorised funds, and financial advisers, as well as trade bodies representing asset managers, consumers who invest in authorised funds and consumer representative organisations.
The final rules and guidance we have made, for insertion into the Collective Investment Schemes (COLL) Sourcebook, are in Appendix 1 of the policy statement. These come into force on 1 April 2019 (on risk free box profits) and 30 September 2019 (value assessment and independent directors).
The final non-Handbook guidance we have made related to share classes (FG18/3) is in Appendix 2 of the policy statement. This is effective immediately.