The insurance-linked securities (ILS) market’s investment managers are affected by the forthcoming Alternative Investment Fund Manager Directive (AIFMD) and service providers are busy rolling out solutions to make ILS investment managers transitions simpler.
SS&C GlobeOp, a leading provider of fund administration services, including a dedicated ILS and risk linked securities specialist division through its acquisition of Prime Management, has announced that its application has been approved by the UK’s Financial Conduct Authority to provide Depositary Lite services under the new AIFMD regulatory environment.
AIFMD, which will be fully implemented on the 22nd July 2014, will not just affect EU based ILS managers but also any ILS managers around the world who seek to raise new funds from European investors.
This will include ILS managers and insurance-linked funds looking to raise new capital from Europe for the January 1 reinsurance renewal season, a key market juncture when new opportunities are often presented which require boosting ILS funds capital bases.
Through the new service SS&C GlobeOp will help managers comply with various depositary aspects of the AIFMD regulatory requirements, including functions relating to asset verification, cash flow monitoring and oversight services.
“We have been operating as a Depositary ‘Lite’ under the transitional provision for a number of months and we are delighted to now receive our full authorization,” commented Des Pierce, Senior Director, SS&C GlobeOp.
“We’ve seen strong interest in our Depositary ‘Lite’ service and signed up several fund managers to date,” added Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. “We look forward to adding value to current and future customers with this offering and developing future enhancements as regulations continue to evolve.”