Thursday February 1 2018

News Source: Fund Regulation

Focus: Other

Type: General

Country: France




On 31st January 2018, Autorite Des Marches Financiers (AMF) published the Asset Management Risk Procedure Guide.

The guide is intended for Portfolio Management Companies (SGPs) who manage UCITS or AIFs and / or which provide the investment management service of portfolio on behalf of third parties. To control the risks associated with their business, the SGPs must establish and keep operational prevention and risk management procedures which they will regularly monitor the correct application. For this purpose, the SGP must identify the risks against which they wish to protect themselves, should eliminate or, on the contrary, the risks associated with investing in financial assets to which they want to expose themselves to manage.

The risk management system therefore consists of an SGP which must: –

  • Identify the risks to which it is exposed and
  • Analyse these risks and establish a suitable prevention and risk management system.

The SGP must periodically assess the risk levels to which the investments are exposed. Risk mapping must take into account all company processes related to the collective or individual management activity and must measure the probability of the occurrence of a risk factor by determining whether it is critical or not in relation to its probability of realization.

Please click on the above link for more information.