PwC Health Check for UCITS III ManCos

The emerging functions of UCITS III Management companies and the related role of their leaders have provided the industry with many challenges. The key areas of challenge include: Understanding the regulatory market expectations of the activities, as well as ensuring compliance with regards to risk processes.

UCITS III Management Companies (“ManCos”) have to deal with an increasing size and complexity of fund structures and investment policies. The challenges and opportunities arising from UCITS III are multi-faceted: ManCos have to ensure that legal and regulatory requirements are met whilst also being prepared to identify and capitalise on the opportunities brought by UCITS III.

Hence, the key question is: “Is my UCITS III ManCo properly structured both from a regulatory and a business perspective and do we take advantage of those evolutions?”

The Challenge

We currently observe in the market the following indicators as areas needing focus:

• Gaps between current organisational structures and the constitution documents;
• Lack of processes, procedures, clear roles and responsabilities for leaders;
• Lack of monitoring controls on distributors;
• Need for enhancement of an effective risk management and valuation process;
• Underestimation of tax implications and opportunities;
• Optimisation of recruitment and retention of employees.

The PricewaterhouseCoopers Health Check for UCITS III ManCos

To provide an adequate overview of the entire ManCo’s value chain, including a clear evaluation of the company’s positioning and opportunities, PricewaterhouseCoopers has developed a tailored Health Check for UCITS III ManCos targeting five key areas:

• Organisation and Governance;
• Distribution;
• Risk Management;
• Tax;
• Reporting.

How can the Health Check help you?

• The Health Check enables you to prioritise essential requirements;
• It is a coherent tool to ensure that all potential issues are revealed and properly addressed;
• It facilitates conformity between Regulatory, Tax and Compliance requirements;
• The Health Check strengthens your positioning and enables you to concentrate on your core business.

What are the objectives of the Health Check?

• Identifying key areas for improvement and key opportunities;
• Mitigating your risks;
• Clarifying roles and responsibilities;
• Proposing solutions for optimisation.

What are the deliverables?

Our team of experts will meet with key representatives of your ManCo and will review relevant documentation and processes with a view to providing you with a comprehensive analysis versus requests and market practices including:

• An independent assessment of your positioning over the whole value chain including recommendations;
• A Road Map to support your strategic reflections and future developments.

Why PricewaterhouseCoopers Luxembourg?

PricewaterhouseCoopers Luxembourg has about 1,800 professionals coming from more than 49 different countries. PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.