Bringing you live news and features since 2006 

Veneziano publishes white paper on the future of delegation for investment management


Consulting firm Veneziano & Partners has published a white paper on the future of delegation for investment management.

The white-paper is addressed to US fund managers intending to tap European markets and be mandated for investment management of EU domiciled funds.
“The Future of Delegation of Investment Management” aims at illustrating some of the main points surrounding the delegation of investment management and the ESMA opinions of summer 2017, with a view to providing a road map to US Fund Managers interested in dipping their toes in the European investment market.
The firm writes that delegation plays a pivotal role both in the ESMA cross-sectoral opinion and the investment management opinion and represents a space where there is high likelihood of increased costs due to ensuing heightened scrutiny by National Competent Authorities (NCAs).
“More intelligence work, policies, procedures and machinery will be required in order to allow US Fund Managers to run European operations going forward. Special attention will have to be paid on how functions are delegated from EU to non-EU entities in order to maintain alignment with the new principles created by ESMA opinions.
“In fact, it has become clear that delegation and outsourcing are seen as privileged avenues used by UK market participants to circumvent the loss of passporting rights. In particular, ESMA cross sectoral opinion, whilst recognising the efficiencies that can be achieved through outsourcing and delegation, also stresses the risks inherent to such practices, especially in cases of outsourcing to non-EU counterparts.”
“The way to Brexit is paved with unintended consequences,” says Attilio Veneziano, founder of Veneziano & Partners.  “The generalised clamp-down approach on outsourcing and delegation adopted by ESMA in its opinion on investment management is tainted with the same lack of perspective on the bigger picture that characterised Brexit. ‘Non-EU’ is indeed a blanket categorisation – one that indiscriminately captures today what the UK will only become in an immediate future. Whilst it seems quite clear that these new ESMA principles and EU Commission proposed measures were conceived with the future of the UK in mind only, the new approach of heightened supervisory convergence affects other market participants today, who were never the intended ultimate recipients of the created principles.”

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by