Carne Global Financial Services Group, an independent advisor to the European hedge fund and traditional fund management industries, has launched a new fund registration service aimed at smoothing the sometimes rocky path towards UCITS III authorisation.
Carne has launched the integrated application as a range of modular services that firms can choose from to help them with their establishment process. This will provide a one-stop shop for fund managers seeking to set up UCITS III funds quickly and correctly.
Amongst the critical areas the package addresses are the effective coordination of the initial fund set-up, the development of the risk management process and statement, and the provision of independent directors and a management company where required. Carne can also assist in advising on the systems and processes involved with derivatives and compliance issues.
“Unfamiliarity with UCITS III funds procedures is costing fund managers precious time and money. Despite increased interest in the directive, which permits, amongst other things, leverage through the use of derivatives instruments in funds, many firms are finding the set-up process for UCITS III more time consuming than it needs to be,” says John Donohoe, CEO, Carne.
Carne can also provide funds with ongoing UCITS support services related to service provider selection and management and the registration of funds in multiple jurisdictions. The service can be used for a range of sophisticated products currently being submitted by the investment industry for UCITS distribution.
“Given the increased interest in UCITS III structures, there is no reason for investment firms to have to grapple with an unfamiliar structural framework. Our service has what the fund manager needs in one place,” says Donohoe.
A major contributory factor to the delays asset managers are facing has been ill prepared risk management statements and business plans. These delays have also been caused by managers ensuring they have proper processes and procedures around derivatives. While some firms are taking as much as four to six months to secure approval for a UCITS III fund, Carne is confident this can be achieved in two to three months if the application is correctly submitted first time around.
“The UCITS III fund structure is one of the most highly regulated and controlled fund structures you can have. It is being used for a wide range of products, including the ever more popular 130/30 funds, ETFs, and structured products. But a lack of familiarity with the establishment process is creating unnecessary delays and cost. Carne has an extensive track record in structuring UCITS vehicles in both Dublin and Luxembourg. We can ensure that fund filings made under the UCITS III Directive meet all the regulatory requirements,” adds Donohoe.