As global financial markets evolve, asset managers and offshore funds must navigate an increasingly complex regulatory landscape. Key jurisdictions such as the US, UK, Singapore, and Hong Kong have heightened their scrutiny, emphasizing greater duty of care, fairness, and business conduct standards.
AML/CFT Compliance
Anti-money laundering and countering the financing of terrorism (AML/CFT) remain top priorities. Managers must build awareness of AML “red flags,” perform due diligence, and promptly file suspicious transaction reports (STRs).
Transitioning to Licensed Fund Management
With the repeal of the Registered Fund Management Companies (RFMC) regime, transitioning to licensed fund management companies (A/I LFMC) is crucial. This involves updating compliance manuals, meeting risk-based capital requirements, and adhering to new filing obligations.
Business Continuity Management
Effective business continuity plans are essential. Asset managers should identify critical business services, establish recovery objectives, and map dependencies. Regular reassessment and third-party involvement in testing are recommended.
Corporate Governance Enhancements
For Cayman funds, recent updates emphasize structured governance, conflict of interest policies, and comprehensive compliance at both the manager and fund levels. Regular board assessments and engagement with service providers are crucial for maintaining compliance.
Conclusion
Staying informed about emerging trends, regulatory changes, and compliance requirements is vital for asset managers and offshore funds. By proactively addressing these areas, firms can navigate risks effectively and ensure sustainable growth in a dynamic regulatory environment.
For detailed insights, visit PwC’s blog on navigating key risks and regulations.
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