Context

Luxembourg is the leading centre for cross-border fund distribution in Europe. This leading position requires Luxembourg fund managers and global distributors to acquire the keys and tools necessary to understand the multiple relationships and risks involved in fund distribution.

Objectives

By the end of this training, participants will:

• Have a clear and precise understanding of the risks related to fund distribution.
• Be able to develop a holistic internal risk management framework for fund distribution.

Content

During the training, we will focus on the following topics and show how they relate to each other and why this challenges a compartmentalised management of these different subjects.

• Product governance rules for manufacturers/product distributor
  • Product governance rules aim at avoiding and reducing, from an early stage, potential risk of failure with investor protection rules.
• Monitoring the Distributors
  • From one distribution model to another, the nature of the risks and the controls to perform can be very different. What are the main risks attached to intermediation?
• Distribution Contracts Management
  • In terms of distribution, different types of contract and different models exist. Such diversity creates a potential risk for organisations. How to improve risk control in this area?
• Cross-border authorisation
  • Cross-border distribution is a reality for most of the asset managers and it may turn into high cost and complexity if it is not properly organised and managed. (the training will include some key CBDF considerations)
• Remuneration of Distributors/ Inducements Restrictions
  • The operational complexity and reasons for controlling the distributors’ remuneration.
• Internet website
  • The internet is increasingly used as a source of information about financial investments. Many investors look for information online. Online platforms are also being used to make direct purchases of investment funds. Identify and minimize the related risks.
• Data quality
  • Data quality and centralisation are key for successful distribution risk monitoring. Overview on the information which can be used for several different controls and reconciliation.
• AML / KYC
  • Insight on the money laundering risks and investment fund manager’s obligations vis-à-vis transfer agents and direct investors.
• Documentation Compliance and Dispatch
  • Controls to put in place to meet regulatory requirements and local marketing rules.

A special focus will be placed on interaction with participants as well as on question and answer sessions.

Speakers

Hoa Le

Ilarias Ferraris-Cockenpot

Target audience

Monitoring functions of an IFM or global distributors

Duration

3 hours

Languages

English