In a few weeks’ time, the first authorised investment funds will reach their year end for which they will be obliged to produce and publish an Assessment of Value. When published, these Assessments should be expected to attract significant attention, especially from the financial press, but also from financial advisers and the regulator. OWL is advising firms to consider in good time what their funds’ Assessments might look like and what impact they might have on sales.
Whatever grace the FCA may be minded to extend in the early months, Independent Directors of authorised fund managers will be held to account for the quality of the Assessment of Value and for appropriate remedial action to ensure that the firm is acting in investors’ best interests. Without losing their independence, Independent Directors need to ensure that they have sufficient knowledge and understanding of their responsibilities to enable them to determine the adequacy of the approach taken by the firm and to challenge the executive where necessary. Independent Directors require independent support to ensure they are not found wanting by the regulator.