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ALFI Publishes Comprehensive Framework for Fund Industry
Luxembourg, May 2015 - The Association of the Luxembourg Fund Industry (ALFI) has released a detailed framework outlining best practices and guidelines for fund industry players to ensure compliance with regulatory requirements and maintain investor trust.
Guidelines for Due Diligence
The comprehensive framework provides a structured approach to managing various aspects of custody operations, including:
- SLA Management: Service Level Agreement management
- Legal and Contractual Agreements: Review and monitoring of legal agreements with third parties
- Cash Flow Monitoring: Monitoring of cash flows with third parties, including reconciliation processes for derivatives and “not in Bank assets”
- Custody Operations Review: Review of custody operations, including supervision of settlement of assets, failed trades, and unmatched trades at sub-custodian level
- Fund Accounting and NAV Errors: Review of fund accounting and NAV errors and breaches
- Global and Sub-Custodian Network Review: Selection process, monitoring, and oversight of prime brokers
Aims and Benefits
The framework aims to promote high professional standards, quality products, and services within the Luxembourg investment fund industry. By implementing these guidelines, ALFI members can ensure compliance with regulatory requirements, protect investor interests, and maintain their competitive edge in a rapidly evolving market.
“We are committed to providing our members with the necessary tools and guidance to stay ahead of the curve,” said ALFI Secretary General, Marc Schwetz. “Our framework for due diligence demonstrates our dedication to promoting best practices within the industry and ensuring that Luxembourg remains an attractive centre for investment funds.”
Accessing the Guidelines
The guidelines can be accessed on ALFI’s website at www.alfi.lu.
About ALFI
ALFI is the representative body for the Luxembourg investment fund community, founded in 1988. With over 1,300 members, including Luxembourg-domiciled investment funds, asset management companies, and a wide variety of service providers, ALFI plays a key role in shaping regulation, promoting professional standards, and fostering the growth of the industry.
For more information on ALFI, please visit www.alfi.lu or follow us on social media: LinkedIn (The Luxembourg Fund Industry Group by ALFI), Twitter (@ALFIfunds), YouTube, Vimeo.