Internal audit in an AIFMD world
The choice of the internal auditor in this context will prove just as crucial, since it will be difficult, often just for the obvious reasons of cost, to have a permanent, full-time employee within the company.
The enactment of the Law of 12 July 2013 on Alternative Investment Fund Managers (AIFM) has introduced new challenges for the alternative asset management industry.
The demand by regulators, both at European and at Luxembourg level, for enhanced risk governance and risk management accountability at board and executive level, has reached unprecedented levels and is extended from now on to management companies managing non-Undertakings for Collective Investment in Transferable Securities (UCITS) funds, while, at the same time, the law also clarifies and broadens the role and duties of banks through their depositary function for non-UCITS. In the new regulatory framework, the role and the importance of the internal audit function has taken on a new dimension: as well as becoming a regulatory obligation within all types of AIFM, internal audit now has an advisory role at board and executive level within the organisations impacted by the AIFM law. In addition, new competencies will be required in order to properly cover enhanced technical areas.
Inside magazine issue 3 – February 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
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