‘Transparency, information and governance’ topped the list of concerns for 160 high-level European fund management industry professionals in the area of non-financial risk management, a survey revealed.
In this category a huge majority (91%) agreed that the European regulator must ensure that information is genuinely fair, clear and not misleading.
The Edhec-Risk Institute, which carried out the Shedding Light on Non-Financial Risks survey, said the main message from this study is that respondents are concerned about themes that Europe’s regulator has not paid attention to lately, such as the Alternative Investment Managers (Aifm) Directive.
One area that Aifm deals with is the responsibilities for the restitution of assets should a fund lose them. The survey found that this should be contractually defined between depositaries and asset managers. For 68% of respondents this should be done at the creation of the fund.
Moreover, the depositaries should only be unconditionally responsible for the assets that they actually control, according to 69% of respondents, and responsibilities should therefore be defined by asset class.
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