The International Financial Services Centres Authority (IFSCA) has proposed amendments to the FME Regulations to introduce a Platform Play framework, discussed below:
What?
Fund Management Entities (FMEs) operating in GIFT IFSC may extend their fund management platforms to other clients.
Who?
All FMEs registered with IFSCA can manage schemes (funds) for other clients, up to an AUM of USD 10 million per fund.
How?
– Adequate disclosures in offer documents
– Appointment of distinct Principal and Compliance Officers for each strategy.
– Implementation of a comprehensive risk management framework.
– Regular internal audits and reviews.
– A robust mechanism to address investor complaints and disputes.
– Operational independence for each strategy.
Why?
This framework draws inspiration from the Luxembourg ManCos model, managing more than EUR 100 bn in AUM, where investment funds are managed on behalf of others, handling key tasks such as portfolio management, risk control, compliance, and investor relations.
The proposed Platform Play framework will allow fund managers to explore opportunities in GIFT IFSC by using the platform of an existing FME. Additionally, this framework offers existing FMEs the opportunity to expand their service offerings to other funds.
General public and stakeholders are requested to forward their comments/suggestions on this framework on or before August 26, 2024.
What do you think of this? Reach out to us at @priya.k@treelife.in for a deeper discussion or leave a comment below.
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