Mastering the distribution chain and related operational challenges
The success of the UCITS product, which has become a worldwide, widely recognised brand, is a result of its high quality, strong investor protection and clear regulatory structuring. These features paved the way for UCITS funds to be distributed globally. The recently implemented AIFMD follows on from this and lays the groundwork for alternative vehicles and their cross-border distribution.
There is no doubt that one of the key elements of successful distribution is having a solid distribution network. The dependency of asset management firms on these counterparties is considerable since they are the main channel through which the target investors can be reached. Hence, the initial selection of distributors and the ongoing monitoring of their activities is of vital importance.
Furthermore, the risks associated with distribution in conjunction with applicable regulatory requirements and oversight of delegated functions cannot be neglected, and it is worthwhile to have a closer look at these challenges and the means required to address them.
This article focuses on the due diligence aspects of distribution and the diligence required of distribution delegates.
Inside magazine issue 8, April 2015
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).