2014 UK REGULATORY AGENDA FOR INVESTMENT MANAGERS

2014 UK Regulatory agenda

o What did they say the FCA say a year ago?o What has it been like:

o Supervisory themeso Enforcement action

o FCA forward agenda and supervisory approacho Impact on alternatives?

What did the FCA say a year ago?

o “Make markets work” o “A fair deal”o “Meeting fair and reasonable (consumer)

expectations”o Business model - new threshold condition o The end of caveat emptoro More assertive and interventionist o Act to protect a wider range of client relationships

What has it been like? Supervisory themes

o TR13/10 - Outsourcing in the asset management industry

o TR14/1 – Transition Management Reviewo Regulation round up:

o UCIS financial promotion rules o Enforcement trends

FCA forward agenda and supervisory approach

o Shaping the future in asset management: (Martin Wheatley, 30 October 2013)

o Fair, transparent and competitive: the FCA’s vision for the asset management sector (Clive Adamson, 30 October 2013)

o Looking ahead to 2014 (Martin Wheatley 9 December 2013)

o CP13/17 – The Use of Dealing Commissions o Market Watch 45

o Best Execution: A reminder of the basics

Implications for Alternative Managers?

o Corporate access and use of dealing commissiono Execution and transaction cost analysiso Charging costs to the fundso Fund raising and disclosureso Investment strategy and consistency with marketing

communicationso Quality of periodic reporting o Independence of risk managemento Valuation

Conclusion

o A year of cultural transitiono Trusted Agentso Business model and cultureo Regulatory fundamentals

o The rules are there to protect investorso Is the best interest of your investors at the heart of what

you do?