AIMA

Other

Client Assets, UK

CASS is the FSA’s Client Assets sourcebook, the section of the FSA Handbook that sets out rules to provide regulatory protection for client money and assets. There has been a number of consultations on proposed amendments to CASS, to which AIMA has responded.

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Relevant documents

FSA Handbook - CASS

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Conflicts of interest - UK

In November 2012 the FSA issued a ‘Dear CEO’ Paper, titled 'Conflicts of interest between asset managers and their customers: Identifying and mitigating the risks' (the 'Paper'), which summarises the outcome of a themed review of asset managers’ arrangements for managing conflicts of interest.

Firms which receive a hard copy of the 'Dear CEO' letter referred to in the Paper are expected to send an attestation of compliance with the Paper to the FSA by 28 February 2013. Managers who do not receive this letter are not being required to attest at this stage. However, senior management of such firms should read and consider the document's findings, review their operations against them and ensure that their firm's arrangements comply with the FSA's rules.

FSA paper - Conflicts of interest between asset managers and their customers: identifying and mitigating the risks (November 2012)

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 Credit Ratings

AIMA submission - proposal for a Directive in respect of the excessive reliance on credit ratings (April 2012)

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EU - Statutory Audit

In response to the financial crisis, the European Commission has been reviewing the auditing standards and procedures applied by Member States.  Following on from that review, on 30 November 2011 the EC published a pair of proposed directives.  The Proposals make it compulsory for all ‘public interest entities’ to be subjected to an annual audit performed in accordance with the International Accounting Standards by a qualified statutory auditor.  The requirements are meant to impose uniformity in the accounting policies used across the EU through the adoption of IAS, as opposed to the use of local Generally Accepted Accounting Principles in the respective Members States.

Relevant documents

Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts

Proposal for a directive of the European Parliament and of the European Council amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (COM(2011) 778 final)

Proposal for a directive of the European Parliament and of the European Council on specific requirements regarding statutory audit of public interest entities (COM(2011) 779 final)   

Opinion of the Committee on Economic and Monetary Affairs for the Committee on Legal Affairs on Audit Directive (March 2013)

AIMA documents

Position Paper on EU Accounting Standards Reform and Extension of the Statutory Audit Requirement (December 2012)

Summary of the proposed revisions to the Statutory Audits Directive (October 2012)

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European capital markets and regulation

Given the transition to a single rule book in financial services across the EU and the EU legislator's willingness to have all financial markets, products and actors covered by regulation, the EU institutions have begun to focus more closely on the development and maintenance of European capital markets and the impact of European regulation in this area.

On 25 March 2013 the European Commission issued a Green Paper in order to start a broad debate on how to foster the supply of long-term financing and how to improve and diversify the system of financial intermediation for long-term investment in Europe. Alongside the Green Paper, the European Parliament's Economic and Monetary Affairs Committee has launched a public consultation on ways to further enhance the coherence of EU financial services legislation.

Relevant documents

Green paper on long-term financing of the European economy (March 2013)

Green paper on long-term financing of the European economy - Frequently Asked Questions (March 2013)

Commission staff working document accompanying the Green paper on long-term financing of the European economy (March 2013)

ECON - public consultation on the coherence of EU financial services legislation (March 2013) 

AIMA documents

Submission - The Challenges of Long-Term Investment Funds (May 2013)

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Exchange traded funds

IOSCO consultation report - Principles for the Regulation of Exchange Traded Funds (March 2012)AIMA response to IOSCO's consultation report on Principles for the Regulation of Exchange Traded Funds (June 2012) 

Reforming the banking sector

AIMA submission - consultation by the High-level Expert Group on reforming the structure of the EU banking sector (June 2012)Consultation by the High-level Expert Group on reforming the structure of the EU banking sector (May 2012)

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Resolution of Financial Institutions

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Valuation for Collective Investment Schemes

On 16 February 2012, the Technical Committee of the International Organization of Securities Commissions (IOSCO) published a consultation report on Principles for the Valuation of Collective Investment Schemes. The aim of this consultation is to outline principles against which both the industry and regulators can assess the quality of regulation and industry practices concerning collective investment schemes valuation, thereby ensuring that investors are treated fairly. Responses to the consultation are invited by 18 May 2012.

Relevant documents

IOSCO consultation: Principles for the Valuation of Collective Investment Schemes (February 2012)