ESMA'S UPDATED LIQUIDITY STRESS-TESTING RULES FOR INVESTMENT FUNDS WILL BE EFFECTIVE FROM THE 30TH SEPTEMBER 2020.
FUND MANAGERS: Looking for an ESMA 34-39-882 compliant liquidity reporting solution?
Case Studies
Multinational British Bank
UCITS compliant risk monitoring system for a large number of portfolios distributed among several fund administrators pursuing a wide range of strategies for tradable assets.
After an initial analysis of the source data and a testing phase, we established the data flow with fund admins and created an automated daily data -feed and reporting through our platform, RiskRadar.
The daily risk reporting through our UCITS compliant pack:
- Includes a notification e-mail of any deviations from the pre-agreed portfolio guidelines;
- It is accessible through individual accounts.
Further to this, we provide monthly overview reports of the adherence to the risk profile which serve as a base for the in-house reporting to the conducting persons.
- By efficiently creating interfaces with several fund admins and providing the relevant risk reports we offered a turn-key solution and minimized the workload and cost on the client side;
- Our exception-based reporting enables the client to easily monitor the risk of a large number of portfolios. The customizable guidelines reporting helped to tailor the services according to the client’s needs.
Luxembourg Management Company
Support the in-house permanent risk management function (PRMF) further formalize its framework of operations to adapt to new regulation and investors’ demand for independent risk monitoring.
Arkus assisted the client to perform a complete overhaul of the foundations of its risk management framework:
- Arkus introduced a systematic & proprietary methodology to draft over 20 individual funds’ risk profiles;
- Based on the above, Arkus re-designed the existing UCITS Risk Management Procedure and added a brand new AIF section;
- To support the PRMF, Arkus was appointed to provide on-going risk monitoring services for the complete range of products served (UCITS, hedge funds, and private equity).
- Ability to introduce a systematic, consistent and replicable approach to the funds’ risk profiling process, covering both tradable and non-tradable assets;
- thanks to a broad range of risk management expertise, an ability to accompany the client’s growth towards new strategies seamlessly and establish a long-lasting partnership.
French Private Equity Fund
Substantiate the AIFM permanent risk management function to also act as a conducting officer.
To assist the client build a new independent permanent risk management function (PRMF) and operate it on an ongoing basis, a toolkit was deployed with the following features:
- As a key foundation the AIFM Risk Management process was drafted in close cooperation with the group’s management and investment team;
- an efficient and value-adding independent risk management process was implemented and run;
- Team with operational experience in risk management and private equity and appropriate seniority level;
- Able to establish a strong relationship and trust with investment professionals thanks to sharing a common language and understanding;
- Creatively deliver proportionate advice and meaningful recommendations to the board.
Management Company of a Scandinavian Independent Asset Manager
Awareness raising and board education – Risk management training for directors.
Arkusdesigned a two-hour training delivered by an independent director to independent directors. During the workshop and upon completion, board members are able to:
- Understand the regulatory framework relevant to both UCITS and AIFs/AIFMs;
- Learn about the key requirements applicable to both with particular focus on the Luxembourg context;
- Share practical feedback and insights from a practitioner on key features/pitfalls of the risk management process, risk profile, and SRRI.
- Strong understanding and operational experience of asset management;
- Involvement in professional associations and close relationships with regulators which enable us to make the link between technical requirements of new regulations and their practical implementation in the real world.
Canadian Full Service Real Estate Investment Firm
Outsource the AIFM permanent compliance function.
Arkus designed and implemented a toolkit tailored to the client’s real estate business and already formalized operations in North America. The goal was to assist the client to comply with the AIFM Directive, delegated regulations, and Luxembourg’s best practices in relation to compliance matters whilst limiting redundancy of controls already performed and documented within the organization. This includes:
- Review and analysis of existing policies/procedures;
- Development of an annual compliance plan, calendar, and dashboard;
- Regular reporting to senior management and to the CSSF;
- Regulatory watch: inform the client of the potential operational impact of any relevant new regulation.
- Ground in practice
- Rooted in an operational understanding of business
- Pragmatic, tailored and proportionate
German Based Renewable Energy Player
Support the internal risk management function of an AIFM. Implement an AIFMD-compliant risk management framework.
Arkus Supported the client set up the foundations of its risk management framework right from the beginning by:
- Facilitating a half-day interactive workshop to introduce the key tools to be used;
- assisting the client to complete the risk profiles of 2 sub-funds (SIFs);
- Drafting the Risk Management Process of the Luxembourg-based AIFM meaningful to an entity managing renewable energy funds;
- Support the client to design the AIFM operational risk matrix.
- Methodology (RAR – criticality scores);
- Interactive workshop facilitated by risk professionals;
- Leverage on credentials established with engagements in similar sectors.
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Contact
Managing Director
Andrea Brevi
andrea.brevi@arkus-fs.com
+352 621 533 687
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General Enquiry
info@arkus-fs.com
T : + 352 42 26 11 111
F : + 352 42 26 399
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