Regulatory Alerts2016-02-04
Guernsey FSC Thematic Review on Alternative Custody Arrangements of Open Ended Collective Investment Schemes
The Guernsey Financial Services Commission conducted a thematic review of alternative custody arrangements in open-ended collective investment schemes to verify the effectiveness of oversight and investor protection. The findings revealed significant variability in how schemes monitor rehypothecation, with several firms lacking robust intraday monitoring or relying on inadequate quarterly reviews. The Commission encourages firms to enhance their risk management frameworks to align with identified best practices and notes that future thematic reviews may become mandatory.
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