Posts by Kelly Goldie
The Importance of Regulatory Horizon Scanning and Tailored Reporting for Investment Managers
In today’s rapidly evolving regulatory landscape, investment managers face a complex web of compliance requirements that can significantly impact their operations. Regulatory horizon scanning has emerged as a critical practice to help organisations stay ahead of potential regulatory changes and ensure continued compliance. This article explores why, here at Investment Solutions Consultants (ISC) Ltd, we strongly believe that a robust approach to regulatory horizon scanning is essential and why the reporting produced must be tailored and focused to meet specific customer requirements
Read MoreESG Post-Trade Governance – Potential Consideration
If you are an Asset Manager investing in ESG strategies, the chances are you will have a strong governance model over determining what represents an ESG investment in line with the strategy for which you are investing
Read MoreESG Pre-Trade Governance – Potential Considerations
If you are an Asset Manager investing in ESG strategies, the chances are you will have a strong governance model over determining what represents an ESG investment in line with the strategy for which you are investing
Read MoreOperational Resilience Update – Mapping and 3rd Parties
Under Operational Resilience, firms must identify and document the people, processes, technology, facilities, and information essential for delivering important business services, including any third-party relationships that could affect impact tolerance
Read MoreCommon Regulatory ESG Issues Facing Asset Managers
ISC has written an insightful article on the Regulatory ESG Challenges Faced by Asset Managers.
Around 530 million years ago, multicellular life burst onto the scene on Earth. Having been single celled for two billion years, this explosion of multi-cellular creatures became known as the “Cambrian Explosion.” In the evolutionary blink of an eyelid, life went from a few different types of single-celled organisms to a huge variety of diverse
Read MoreOperational Resilience Update – Impact Tolerances
Under Operational Resilience, firms must set impact tolerances for important business services and regularly review them. The FCA findings recently highlighted a variety of impact tolerances with limited rationale on what constitutes intolerable consumer harm or risks to market integrity, necessitating further clarification
Read MoreOperational Resilience Update – Important Business Services
Under Operational Resilience, firms must identify their important business services and review them regularly. Remember that these are services which, if disrupted, could
Read MoreESMA Clarification on AI for Firms Engaging with Retail Investment Clients
ESMA has issued guidance for investment firms using AI, emphasising client best interests, to ensure compliance with MiFID II and safeguard investors. Below is a summary of that guidance.
The advancement of Artificial Intelligence (AI) offers transformative opportunities in retail investment services, enhancing efficiency, innovation, and decision-making. However, AI also presents risks such as algorithmic biases, data quality issues, and transparency challenges. Despite the initial phase of AI diffusion, its impact on firms’ behaviours and retail investor protection is expected to be significant. Management bodies retain responsibility for decisions, whether made by humans or AI.
Read MoreSome Thoughts On The Implementation of an ETF Capability
The attractiveness of diversified, liquid, continuously priced, low-cost instruments to investors has never been greater. The growth in ETF AUM globally from around $1 trillion in 2008 to around $14 trillion at the end of 2023 shows the size of the inroad this asset class has made in a relatively short period. As Investment Managers wrestle with cost pressures across the industry, they are increasingly looking at adding ETFs as a complementary offering.
Read MoreESMA ESG/Sustainability Fund Naming Conventions
On 14th May, ESMA published its final report on funds’ names using ESG or sustainability-related terms. This followed feedback and changes made to the original consultation. At 57 pages it is a hefty read, but there are some important changes to note within the text.
Some of the key points where changes have been made because of the responses to the consultation include: –
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