The Securities and Commodities Authority (SCA), in collaboration with IOSCO and Africa/Middle-East Regional Committee (AMERC), organized a training program involving a large number of SCA’s staff and representatives of other regulatory authorities including: the Central Bank of Ireland, the UK Regulatory Authority, and the French Financial Market Authority, in addition to representatives of the Hong Kong Regulatory Authority. The program lasted for three days, during which it addressed various issues related to investment funds. The regional program aimed at identifying the mechanisms of monitoring the investment funds and exchanging experiences with regard to relevant strategies and tools and the practices of the concerned authorities in the participating countries.
H.E. Dr. Obaid Al Zaabi, CEO of SCA, opened the training program with a speech in which he reviewed the opportunities and challenges facing the local and international investment funds sector. He praised the efforts of IOSCO in organizing the program. He also welcomed the participants from all the regulatory authorities who attended the program. At the end of the program, Dr. Al Zaabi honored the members of the IOSCO committee who are the lecturers that presented the program’s sessions and provided a presentation of the program’s scientific and technical material; as the regional workshop attracted international speakers and experts in the field of capital and investment funds. Regulatory authorities from more than 25 countries from Africa, the Middle East, Europe and some East Asian countries have participated in the program.
Events of the first day of the program
In his speech, Gary Tidwell, Capacity-Building Advisor in IOSCO, addressed, in the opening statement of the program, the importance of cooperation among international financial markets regulatory authorities, especially in light of the recent developments in the financial industry in the world, particularly the fast-growing investment funds industry in recent times.
The first day events included five sessions; the first session, presented by Dr. Sheen Warner of IOSCO, focused on the subject of: "the definition of investment funds” in terms of what they are, their types and characteristics."
The second session presented by Catherine Dwyer, a key specialist in investment funds policies at the Central Bank of Ireland, addressed the subject of: "managing investment funds" in terms of policies, mechanisms and different roles of service providers, and discussed the structure of the investment fund and the role of the management company that carries out promotions, management and investment decision-making, then the role of the custodian who is responsible for the safe custody of the fund assets as a separate entity independent from the management company, and then the administrative services provider who maintains the register of the unit holders, evaluating the units, issuing and retrieving the units to the investors and keeping all the fund records. She then reviewed practical examples of conflict of interests and problems faced by investment funds and highlighted the irregularities that had occurred.
The third session, presented by Robert Taylor, head of the Global Asset Management Strategy at the Financial Conduct Authority, and the Chairman of the Investment Funds Committee of IOSCO, addressed the subject of: "channels of distribution of investment funds" and discussed the role of brokers, financial planners and banks, as well as the direct sale of funds units and financial retirement plans.
While the fourth session, presented by Dr. Sheen Warner: addressed "International regulatory activities on investment funds", including the development of IOSCO standards, the work of the Financial Stability Board (FSB) on shadow banking and the systemic risk framework.
The first day was concluded with a session on "Investment Funds Industry in the Region" presented by Mr. Ahmed No’man, Chief Compliance Officer in DIFC, Dr. Ryan Limand, Managing Director and Assets and wealth department Manager at EDS Securities and Dr. Sheen Warner. The session focused on the regulatory situation in the UAE, as well as in the Middle East and North Africa region compared to other regions.
The second day of the program
The second day consisted of three sessions: the first session was presented by Alexandra Yeung, Senior Manager, Investment Products Division, Securities and Futures Commission, Hong Kong, entitled "Organizing Investment Funds and Fund Managers", which discussed registration and licensing requirements, governance structure, segregation and protection of customer assets, and disclosure requirements.
The second session was presented by Robert Taylor on "Supervision of investment managers and funds (through a practical case), focusing on supervision of asset management activities, how they are managed for investors, how assets are assessed and disclosure. The third session was presented by Catherine Dwyer on "How to prepare and conduct an inspection of investment funds", which covered the skills and requirements framework, inspection methodology, mechanisms and tools, samples selection and scope of inspection, the session was concluded with a practical case.
End of the program
On the third and final day of the program, Gary Tidwell presented the first session entitled "Investment Funds and Protecting the Individual Investors". He presented a variety of concepts including: conflict of interests, valuation of fund assets, subscription prospectus, offering documents, advertising regulation, know your clients requirements, management company fees and disclosure requirements, and investor education. The session included a variety of practical cases.
The second session, which was presented by Marianique Dares, the Chief Inspector of the French Financial Markets Authority, addressed a practical case of the investigation of the violations of the investment funds.
The last day was concluded with various practical cases and examples of "investment fund violations", presented by Gary Tidwell.