UK-based fund managers must comply with increasingly complex, and ever-changing regulation. The regulatory structure covers overarching principles of business and detailed regulation. Some requirements stem from European directives and regulations and others are home-grown. The exact extent of the applicable rules depends largely on the precise activities of the firm. Outsourcing receives specific regulatory attention.
In this article, we look at the regulatory structure that applies when fund managers look to outsource processes (such as investment operations, fund administration, transfer agency or corporate actions relating to instruments held). We consider the EU and UK legislative framework, look at recent developments, and offer outline guidance on how to negotiate outsourcing agreements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
