Gwyn Roberts

30/03/2011 Author: Gwyn Roberts

Editor's view: 31 March 2011

Small words are still creating big problems for managers. In fact, a selection of acronyms and abbreviations – Fin48, Fbar, Fatca, Form PF, ADV I and II, not to mention AIFM – remain the biggest headache in a year that many have predicted, at least in terms of launches and investor interest, will be a positive one. However, for the moment, at least one small word is currently on hold. Technical glitches at the UK’s FSA this week meant that the introduction of new SIFs (significant influence controlled functions), within the improved persons regime, have been put on hold. Getting persons of influence to register with the FSA wasn’t a major bind, but for many managers it had become another worrying issue in the difficult-to-scale wall of new reporting and licensing requirements. US-based managers with a physical presence in the UK will be breathing a particular sigh of relief. The thought of a Shaw, or a Biggs, having to apply for an FSA licence had proved unpopular – particularly when they are already registered with the SEC.   Managers aren’t naïve; they realise that regulation is absolutely necessary. And, for the most part, are happy to provide information to regulators and investors. But, the weight of reporting can also create inefficiencies and stresses, as funds scratch their heads over flexible definitions or scramble to meet tight deadlines. It’s expensive and time-consuming, meaning many funds will pay a big price for these small words.

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