Thursday, December 20, 2012

Random Walkers January


Singapore's first Quant Finance Social event for 2013, Thursday 3rd January 2013

I am not sure if we will have much of a crowd due to the holidays! but if you are still on the island then come on down, there will be a few of us there to ring in the New Year.

We will return to the Bull & Bear on Far East Square where Su will once again give us a special offer including promotional prices on selected drinks and complimentary bar snacks while stocks last.

Bull and Bear
33 Pekin Street, Singapore 048671
+65 6557 0879
www.bullandbear.com.sg

Monday, December 3, 2012

Controlling Conflicts of Interest

Two of the leading regulators’, the SEC and FSA, have voiced concerns about conflicts of interest.

The SEC took a broad look at conflicts of interest in all sectors of the financial industry with particular focus on broker dealers and financial advisors. Conflicts of interest arise in a broad variety and potentially cause big damage. The SEC therefore includes them in their key risk analysis. Financial intermediaries are called upon to constantly identify conflicts of interest, establish compliance and ethics programs and integrate them in the overall risk management framework. Effective policies and procedures must cover a wide range of topics like staff education and training, incentives, persistent identification of conflicts of interests, senior management commitment, monitoring and auditing, as well as enforcement.
The FSA researched the management of conflicts of interest of asset managers. It identified good and bad practices in the purchase of research and trade execution services, gifts and entertainment, access to investment opportunities, employee trading for personal accounts, and the allocation of cost of errors. The FSA concluded that a firm’s culture makes the crucial difference. Senior management must constantly demonstrate its commitment. And business and compliance functions must work together in monitoring and mitigating conflicts of interest to achieve best results.
The FSA found a number of shortfalls in the current management of conflicts of interest and has announced follow-up measures. Other regulators might follow this initiative of the FSA and the SEC for the proper management of conflicts of interest. It is certainly worth reviewing respective practices now.
SEC: 'Conflicts of Interest and Risk Governance', speech by Carlo V. di Florio (http://www.sec.gov/news/speech/2012/spch103112cvd.htm)
FSA: 'Conflicts of interest between asset managers and their customers: Identifying and mitigating the risks (http://www.fsa.gov.uk/static/pubs/other/conflicts-of-interest.pdf)

Random Walkers December

Singapore and Southeast Asia's only Quant Finance Social event is back for December.

This month we will return to the Bull & Bear on Far East Square where Su will once again give us a special offer including promotional prices on selected drinks and complimentary bar snacks while stocks last.

See you there for some Christmas cheer :-)

Bull and Bear
33 Pekin Street, Singapore 048671
+65 6557 0879
www.bullandbear.com.sg



Finalizing the New Fund Management Regime in Singapore


In August, the Monetary Authority of Singapore (‘MAS’) introduced the new enhanced regime for Fund Management Companies. More stringent requirements apply to all Fund Management Companies, current Exempt Fund Managers (‘EMF’) must seek admission as Registered Fund Management Companies (‘RFMC’) or Licensed Fund Management Companies (‘LFMC’).
MAS recently issued additional information for the implementation of the new fund management regime.
These documents provide additional information on the requirements for RFMCs and in particular their control and reporting framework.
According to a survey conducted by MAS in March 2012, 90% of the approx. 560 EMFs are expected to seek admission as RFMC or LFMC. Until 31 October 2012, 58 EMFs had applied to become a RFMC or LFMC. 10 EMFs shut down. By 2 December 2012, 13 RFMCs were registered. A rush in applications for RFMCs or LFMCs may thus be expected in the two month remaining for the applications.