Industry Guidance

IA GUIDANCE ON ACD GOVERNANCE

Following the FCA's multi-firm review on Host AFMs, the IA and its Independent ACD Group published in September 2022 a Guidance document, based on the FCA's report. Although the review concentrated on Host ACDs, the FCA made it clear that its findings applied to all ACDs, regardless of business model and the IA's Guidance is therefore directed at all of its ACD member firms. It has been agreed that the Guidance will be reviewed as part of the IA's work on the implementation of the Consumer Duty and the appropriate aspects of the new rules will be incorporated into the Guidance, along with any other developments.

IA EVERSHEDS SUTHERLAND GUIDANCE ON FCA GUIDING PRINCIPLES ON ESG/SUSTAINABLE FUND DESIGN, DELIVERY AND DISCLOSURE

On 19 July, the FCA published its Guiding Principles on design, delivery and disclosure of ESG and sustainable investment funds. The IA, along with Eversheds Sutherland, have drafted this guidance to help members interpret the FCA Guiding Principles. The guidance includes commentary on the FCA principles, guidance on scope, timing of applying the principles to firms' investment processes, as well as a section on how we think the principles interact with SFDR. To add further value for members, the guidance includes some fictitious specimen funds that have been annotated to try and explain how the Principles may apply in practice. The document also includes a prospectus check list.

IA-Eversheds Sutherland Guidance (September 2021)

CHARITY AUTHORISED INVESTMENT FUNDS

Charity Authorised Investment Funds (CAIFs) are UK authorised funds which are set up exclusively for Charities. CAIFs will be authorised and regulated by the Financial Conduct Authority. Each CAIF will also be registered as a Charity with the Charity Commission for England and Wales.

The Investment Association, the Charity Investors Group and the Charity Law Association have produced a guide for managers wishing to set up a CAIF, including and a model trust deed for a CAIF.

CAIF Guide (April 2019)
CAIF Model Trust Deed (August 2019)

FUND COMMUNICATION

Guidance (February 2019)

MODEL DISCRETIONARY INVESTMENT MANAGEMENT AGREEMENT

Model Agreement Version 3.0 (November 2021)
Model Agreement Version 2.0 (May 2018)
General Licence (March 2013)

GUIDING PRINCIPLES ON OUTSOURCING

Following the Outsourcing Working Group (OWG) Report published in December 2013, the group met again in 2016 to consider the report and whether any areas required further amendments or change. This amended version of the OWG Report contains all of the original contents plus some of the risk-based aspects of outsourcing activities to a third party, with practical examples for asset managers.