Module 2B: Business Challenges and Regulatory – What Directors Need to Know (Fund Management) Expectations

Scope of Coverage

1. Nature of fund management business, including
2. Shifting trends competitive changes;
3. Updates on latest changes of regulations/guidelines relevant to the industry
4. Overview of the expected skillset of directors to understand the nature, conduct and performance of fund management business, including
   • Duties to clients;
   • Duties in relation to risk management issues, especially regulatory risk and operation risk;
   • Key internal controls;
   • Types of investment assets and funds and their risk profiles; and
   • Performance benchmarking and evaluation.
5. Challenges in the operations, systems and procedures to meet the expectations laid out in the applicable SC Guidelines with particular reference to the following areas of
   • Investment management agreement;
   • Records and segregation of functions;
   • Insider and/or price sensitive information;
   • Real or perceived conflicts of interest situations;
   • Market misconduct, including front running and churning;
   • Issues of sales practices of unlisted capital market products;
   • Business continuity plan;
   • Compliance function and compliance officers;
   • AML/CFT framework

Learning Outcomes

At the end of the programme, participants will be able to:

1. Identify and discuss the nature, challenges and opportunities in the fund management business;
2. Evaluate the relevant provisions in the applicable guidelines that directors of licensed intermediaries need to be cognizant of;
3. Assess the challenges facing directors of fund management companies in overseeing the application of and conformance with the applicable guidelines;
4. Exercise judgement appropriately in dealing with issues of business challenges and regulatory expectations brought to the attention of the board.