Regulatory Alerts2019-12-05
FSRA Conduct Standard 2018 on Delegation of Administration Functions for Collective Investment Schemes
The Financial Sector Conduct Authority issued the 2018 Conduct Standard to establish clear requirements for collective investment scheme managers delegating administration functions to third parties. The standard mandates prior Registrar approval, detailed application submissions including board-approved policies and due diligence reports, and maintains the manager’s ultimate accountability for regulatory compliance. It introduces proportionality by requiring due skill, care and diligence relative to a manager’s business scale, while prohibiting delegations that materially increase risk or impair governance and investor service.
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