Post-Trade Risk Roundtable for Funds
Date: 01 March 2016
Location: London EDITION Hotel, Fitzrovia, London, W1T 3NP(map)
RSVP: Register now
Fund managers are paid to take risk, but the risk they are paid to take is investment risk, not operational risk. Yet many have fund managers have discovered to their cost that in major financial disasters, such as the collapse of Lehman Brothers, MF Global, or the Madoff fraud, operational shortcomings can destroy value just as effectively as poor investment decisions. Even an apparently unrelated financial failure may lead either to a total loss of assets, or pitch them into prolonged and expensive litigation. It is therefore essential that fund managers choose the organisations that hold their assets carefully, and pay continuous attention to where, how and on what terms the assets they manage are held. This is why regulators in Europe have, since the financial crisis, imposed new responsibilities on both alternative and mutual managers to appoint custodians with specific safekeeping duties, via the Alternative Investment Fund Managers Directive (AIFMD) and the fifth iteration of the Undertakings for Collective Investment in Transferable Securities Directive (UCITS V).
Our sponsors, Thomas Murray Data Services, are experts in the management of post-trade risk. They are hosting a half day event in London on Tuesday 1 March between 9.00 am and 12.00 pm to explore the following issues:
- Why cash and securities are treated differently
- How account structures impact the safety of assets
- Segregation of assets at the level of the sub-custodian and the central securities depositary
- What AIF and UCITS depositaries are actually liable for
- Different jurisdictions present different risks
- The difference between market practice and what the law says
- The CASS rules on custody of client assets
- The IOSCO principles on asset safety for fund managers
The event will include the following speakers:
Jim Micklethwaite is Director of Capital Markets Group at Thomas Murray Data Services. Jim Micklethwaite joined Thomas Murray Data Services in 1996. He directs the Capital Markets group which is responsible for the collection and validation of data, issuing risk ratings and monitoring all TMDS products. He directs a team of 18 analysts that track market practice in over 100 markets; assess risks in over 85 market infrastructures; 140 CSDs, 260 agent bank ratings and 30 CCPs worldwide. Jim is a subject matter expert on central depositories, and has led various public rating projects for CSDs and more recently major capital market infrastructure CPSS/IOSCO and CSD benchmarkingstudies.