Third-party fund management obligations require FME oversight, continued liability, indemnity, review, termination rights, and timely prescribed fees. An FME using third-party fund management services must verify the third party's eligibility, capability and careful onboarding, while retaining liability ... Summary
Third-party fund management obligations require FME oversight, continued liability, indemnity, review, termination rights, and timely prescribed fees.
An FME using third-party fund management services must verify the third party's eligibility, capability and careful onboarding, while retaining liability towards Restricted Schemes and investors. It must monitor activities, review services, share reports with fiduciaries, maintain termination rights and obtain suitable indemnity. The FME remains responsible for all acts, omissions and commissions of the third party connected with the services.
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