Exposure Draft of the Guidance Statement on Broadly Distributed Pooled Funds Released

After several years in the making, and an unprecedented amount of global industry feedback, CFA Institute have finally released the exposure draft of the Guidance Statement on broadly distributed pooled funds for public comment.

The working party and support team who have managed to agree on this Guidance Statement must be the largest group involved in any Guidance Statement to date and they must be congratulated on producing a paper which they all consider to be a viable set of requirements and recommendations into what is already a quagmire of local and global regulation.

The “broadly distributed pooled funds” umbrella includes a number of fund types which come in various guises; mutual funds, unit trusts, OEICs, SICAVs and it appears that a significant proportion of these will become subject to this guidance.

As such, it is vital that firms review the document in order to ensure that, when the final version is published and becomes effective (expected 1 Jan 2017), firms will know what they have to do and are prepared to do it.

The public comment period is open until 29th April 2016 and we would strongly urge anyone involved in pooled funds to read the document and also send comments to CFA Institute. Even if your comments are only to agree with the document, CFA urge you to respond.

Read the Exposure Draft in full here