News

Global regulators and financial institutions should focus on preventative rather than reactive measures to mitigate the knock-on effects of a CCP (central counterparty clearing house) running into difficulty if one of its clearing members defaults.

Firms outsourcing the compilation and submission of their Annex IV to fund administrators could find themselves under pressure to disclose the document to investors if administration costs are borne by the fund.

A survey conducted by BNY Mellon in conjunction with FTI Consulting on the eve of the implementation of AIFMD (Alternative Investment Fund Managers Directive) found that 13 percent of managers would pass the costs of Annex IV onto the fund, while 29 percent said they would offset some of the costs to the fund.

FICC (the Fixed Income Clearing Corporation) is seeking regulatory approval from the Securities and Exchange Commission (SEC) and Federal Reserve to provide centralised clearing for the US$1.6 trillion institutional tri-party repo market.

Blue Cross Blue Shield and 11 other institutional investors have failed in their attempt to open a new lawsuit against Wells Fargo in relation to losses of over $8.2m incurred in the bank’s securities lending programme during the financial crisis.

A source close to the Central Bank of Ireland, the Irish regulator, has said fund passporting schemes in Asia could facilitate reduced access for UCITS managers to investors in the region.

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