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Fund administrator regulatory expectations - Coggle Diagram
Fund administrator regulatory expectations
In the BVI, all admins of mutual funds carrying out their activities in or from the BVI must be licensed by the BVI Financial Services Commission
In Guernsey, licensing is carried out pursuant to the Protection of Investors 1987 Law for the provision of services to regulated CIS
Any person carrying out financial services in Mauritius must be licensed to do so pursuant to Financial Services Act
Jersey admins must be licensed under the Financial Services Law 1998
The development of local laws and regulation in the interests of protecting the public in financial services have resulted in most fund admin tasks being subject to regulatory oversigh
Subscritptio - receiving funds or assets for the purposes of investment
Administration - providing any administrative, secretarial or clerical services in relation to an investment including
Provision of general accountantcy and bookkeeping services
Provision of valuation services on a continuing basis in connection with any dealing in an investment
Registration
Recording particulars of a specified investor
Issuing a certificate or policy to a specified investor or bearer
The provision of custody services is also regulated and may be undertaken by a fund admin but is usually the remit of a third party
The purpose of regulation is to ensure that those carrying out those services are suitable including that all directors, controllers, partners and managers of the licensee
Act with probity
Demonstrate competence
Act with diligence
Have the experience and soundness of judgement to fulfil their responsibilities
Keep the interests of the clients / investors and of the reputation of the relevant financial centre in such a way that no detriment to reputation may be incurred
Have and continue to demonstrate relevant education and professional qualifications
Fully understand their legal and professional obligations
Have sufficient policies, procedures and controls in place to ensure that their duties are carried out with regard to all legal and regulatory requirements including AML and financial crime
The regulator will have regard to whether any party
Has committed a relevant offence, generally those involving fraud, dishonesty or violence
Has contravened any regulatory law or those relating to AML and CFT
Has engaged in or been associated with business practices that may cast doubt on his competence and soundness of judgement
A significant element of the fit and proper test centres around financial and operational controls designed to ensure a licensee maintains
A sufficient capital base and insurance cover to meet the requirements and risks of conducting business. In order to assess whether these elements are adequate, the licensee must consider the risks inherent in its operations in the context of their nature and scale
Sufficient records to record both its financial status and all other aspects of operations
Sufficient controls in respect of both its records and operations
Staff of adequate number, skills, knowledge and experience
Its complaints history