avantage presents to the Risk Management Advisory Committee (RMAC) of the Investment Company Institute (ICI) on counterparty, liquidity and pricing risks
We were honoured to be invited by the Risk Management Advisory Committee (RMAC) of the Investment Company Institute (ICI) to participate in a briefing session regarding regulatory trends impacting the asset management industry across Europe. The specific topic under discussion was on the latest developments in counterparty, liquidity, and pricing risk regulatory development
The session was chaired by David Martin, Chief Risk Officer, AllianceBernstein L.P. and participants included over 40 risk officers of asset management firms across the United States. avantage was asked to provide an update on pan-European regulatory trends, including specific developments in Luxembourg and the UK. Martin Clark, Head of the Banking Practice; Frederic Gielen, Head of the Asset Management Practice; and Nigel Walker, Head of the Liquidity Risk Management Practice covered the topics at hand and answered the questions from the participants.
While the meeting included a general discussion around the issues faced by asset managers in managing counterparty, liquidity and pricing risks, the main topic revolved around recent regulatory initiatives impacting the management of such risks, including (i) the European Commission consultation on UCITS custodian functions, (ii) the the draft Alternative Investment Fund Management (AFIM Directive (iii) the use of central counterparties for CDSs and (iv the proposed amendments tot the liquidity risk regulatory regime in Luxembourg and the UK.
Participants' major concerns centered around the likely impact of the AIFM Directive on counterparty risk, the use of custodians, and pricing issues encountered by UCITS funds in recent months.
You can download the presentation here.
