Investors continue to misunderstand valuation risk in level 3 hedge fund assets
Emma Cusworth discovers why it remains difficult for investors and regulators to value level 3 assets and hold service providers accountable for any mistakes.
Valuation risk has undeniably risen up the agenda for investors and regulators, prompting a swift reaction from service providers such as fund administrators and independent valuation agents.
However, serious questions remain as to investor understanding of the nuances of level 3 asset valuation and the potential risks that remain. Exactly where the burden of responsibility for valuation of those assets lies is also unclear.
The concern was triggered by the difficulties stemming from the
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Custody
Fund admin providers see strong demand for illiquid strategies
Three-quarters of survey respondents administering $4.4 trillion collectively get weekly illiquids enquiries from managers
Bafin's Hufeld: op risk modelling 'almost impossible'
AMA can go, but other models will stay, Felix Hufeld tells Risk.net
HSBC drives custody growth with China mandate wins
Securities lending also sees uptick as BNY Mellon and State Street announce new clients
ISSA standards seek to stamp out cross-border custody crime
Principles also target misdeeds in settlement and distribution of securities
Are regulators listening at last on the leverage ratio?
Basel Committee, FSB and EBA open ears to balance sheet leverage concerns
Sovereign wealth fund interns cost BNY Mellon nearly $15m
Custodians should retrain HR in foreign bribery rules as SEC threatens further action
Latin alternative funds eye Asia following passport decision
AIFMD 'driving' South American business to Singapore
Non-domestic custodians notch up big deals in Australia
BNP Paribas Securities Services takes A$50 billion of UniSuper assets previously run by NAB