All authorised fund managers who manage UCITS funds are required to submit a Derivatives Use Report to the FCA. This includes UK UCITS management companies who manage EEA UCITS schemes. For fund managers and management companies who are domiciled in other jurisdictions such as Ireland and Luxembourg they will be required to submit a report to their respective regulator based in that country rather than the FCA.
[ultimate_heading main_heading=”FCA DERIVATIVES USE REPORTING” heading_tag=”h1″ main_heading_color=”#ff7230″ sub_heading_color=”#ffffff” alignment=”left” main_heading_style=”font-weight:bold;” main_heading_font_size=”desktop:37px;tablet_portrait:37px;” main_heading_line_height=”desktop:47px;tablet_portrait:47px;” main_heading_margin=”margin-bottom:30px;” sub_heading_font_size=”desktop:24px;” sub_heading_line_height=”desktop:30px;” sub_heading_style=”font-weight:700;” sub_heading_font_family=”font_family:Roboto Slab|font_call:Roboto+Slab|variant:700″ sub_heading_margin=”margin-bottom:35px;”]The UK Financial Conduct Authority (FCA) requires authorised fund managers of UCITS funds to report their use of derivatives on an annual basis. This Derivatives Use Report also known as FSA042 must be submitted in XML format within 30 business days from the 31st October and includes information on derivatives including their underlying risks, any relevant quantitative limits and methods for estimating risks.[/ultimate_heading]
[ultimate_heading main_heading=”REQUEST MORE INFORMATION” main_heading_color=”#ff7230″ sub_heading_color=”#ffffff” main_heading_style=”font-weight:bold;” main_heading_font_size=”desktop:23px;tablet_portrait:23px;” main_heading_line_height=”desktop:33px;tablet_portrait:33px;” el_class=”accent-border-color accent-subtitle-color” main_heading_margin=”margin-bottom:30px;” sub_heading_font_size=”desktop:18px;” sub_heading_line_height=”desktop:24px;” sub_heading_style=”font-weight:700;” sub_heading_font_family=”font_family:Roboto Slab|font_call:Roboto+Slab|variant:700″ sub_heading_margin=”margin-bottom:35px;”][/ultimate_heading][contact-form-7 id=”83261″]
[ultimate_heading main_heading=”THE NEXT DEADLINE IS 12TH DECEMBER 2019″ main_heading_color=”#ff7230″ sub_heading_color=”#ffffff” spacer=”line_only” spacer_position=”bottom” line_height=”1″ line_color=”#ff7230″ main_heading_style=”font-weight:bold;” main_heading_font_size=”desktop:30px;tablet_portrait:20px;” main_heading_line_height=”desktop:40px;tablet_portrait:30px;” el_class=”accent-border-color accent-subtitle-color” sub_heading_font_size=”desktop:30px;” sub_heading_line_height=”desktop:40px;” sub_heading_style=”font-weight:700;” sub_heading_font_family=”font_family:Roboto Slab|font_call:Roboto+Slab|variant:700″ spacer_margin=”margin-top:10px;margin-bottom:18px;” line_width=”650″]ARE YOU READY?[/ultimate_heading]
[ult_countdown datetime=”2019/12/12 17:00:00″ ult_tz=”ult-usrtz” countdown_opts=”sday” br_style=”solid” br_size=”2″ br_color=”#ff7230″ br_radius=”6″ timer_bg_color=”#ffffff” br_time_space=”30″ string_days=”DAY” string_days2=”DAYS” tick_col=”#000000″ tick_sep_col=”#ffffff” tick_style=”font-weight:bold;” tick_unit_style=”font-weight:bold;” tick_sep_size=”desktop:26px;” tick_sep_line_height=”desktop:26px;”]
[ultimate_heading main_heading=”FUNDS-AXIS PROVIDE TWO SOLUTIONS” sub_heading_color=”#72777d” sub_heading_font_size=”desktop:17px;” sub_heading_line_height=”desktop:28px;” sub_heading_margin=”margin-top:10px;margin-bottom:20px;” main_heading_style=”font-weight:bold;”]WE OFFER A FULLY AUTOMATED REPORTING SOLUTION AS WELL AS A SIMPLE EXCEL TO XML CONVERSION SOLUTION. SEE OUR SOLUTIONS BELOW:[/ultimate_heading]
[ult_content_box box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:#f7f7f7|style:none|” hover_bg_color=”#ff7230″ hover_box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:#f7f7f7|style:none|” bg_color=”#3b3b3b” padding=”padding-top:15px;padding-right:10px;padding-bottom:15px;padding-left:10px;”][ultimate_heading main_heading=”LITE SOLUTION” main_heading_color=”#ffffff” sub_heading_color=”#ffffff” spacer=”line_only” spacer_position=”middle” line_height=”1″ line_color=”#ff7230″ main_heading_style=”font-weight:bold;” sub_heading_style=”font-weight:bold;” sub_heading_font_size=”desktop:20px;” sub_heading_line_height=”desktop:26px;” line_width=”250″ sub_heading_margin=”margin-bottom:15px;” spacer_margin=”margin-bottom:15px;” main_heading_margin=”margin-top:15px;” main_heading_font_size=”desktop:34px;”]SUITABLE FOR MANAGERS SEEKING A SIMPLE EXCEL TO XML CONVERSION REPORTING TOOL[/ultimate_heading][/ult_content_box][ult_content_box box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:rgb(247, 247, 247)|style:none|” padding=”padding-top:30px;padding-right:30px;padding-bottom:30px;padding-left:30px;” hover_box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:rgb(247, 247, 247)|style:none|”]
OUR LITE SOLUTION CONTAINS THE FOLLOWING FEATURES:
- DATA COLLECTION
- COLLATING DATA IN EXCEL TEMPLATE
- REPORT GENERATION
- XML CONVERSION
- XML CONVERSION
- XML CONVERSION
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[ult_content_box box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:#f7f7f7|style:none|” hover_bg_color=”#3b3b3b” hover_box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:#f7f7f7|style:none|” bg_color=”#ff7230″ padding=”padding-top:15px;padding-right:10px;padding-bottom:15px;padding-left:10px;”][ultimate_heading main_heading=”FULL SOLUTION” main_heading_color=”#ffffff” sub_heading_color=”#ffffff” spacer=”line_only” spacer_position=”middle” line_height=”1″ line_color=”#3b3b3b” main_heading_style=”font-weight:bold;” sub_heading_style=”font-weight:bold;” sub_heading_font_size=”desktop:20px;” sub_heading_line_height=”desktop:26px;” line_width=”260″ sub_heading_margin=”margin-bottom:15px;” spacer_margin=”margin-bottom:15px;” main_heading_margin=”margin-top:15px;” main_heading_font_size=”desktop:34px;”]SUITABLE FOR MANAGERS SEEKING A FULLY AUTOMATED OUTSOURCED REPORTING SOLUTION[/ultimate_heading][/ult_content_box][ult_content_box box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:rgb(247, 247, 247)|style:none|” padding=”padding-top:30px;padding-right:30px;padding-bottom:30px;padding-left:30px;” hover_box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:rgb(247, 247, 247)|style:none|”]
OUR FULLY AUTOMATED SOLUTION CONTAINS THE FOLLOWING FEATURES:
- DATA COLLECTION
- DERRIVATE EXPOSURE CALCULATIONS COMPLETED
- REVIEW AND LOGIC VALIDATION
- REPORT GENERATION
- XML CONVERSION
- GABRIEL UPLOAD SUPPORT
[/ult_content_box]
[ultimate_heading main_heading=”FEATURES” sub_heading_color=”#72777d” sub_heading_font_size=”desktop:17px;” sub_heading_line_height=”desktop:28px;” sub_heading_margin=”margin-top:10px;margin-bottom:50px;” main_heading_style=”font-weight:bold;”][/ultimate_heading]
[bsf-info-box icon=”Defaults-bar-chart bar-chart-o” icon_size=”32″ icon_color=”#ff7230″ icon_style=”advanced” icon_border_spacing=”50″ title=”MAINTAIN ALL
STATIC DATA” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Enabling you to re-use in other types of regulatory reporting.[/bsf-info-box]
STATIC DATA” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Enabling you to re-use in other types of regulatory reporting.[/bsf-info-box]
[bsf-info-box icon=”Defaults-calculator” icon_size=”32″ icon_color=”#ff7230″ icon_style=”advanced” icon_border_spacing=”50″ title=”AUTOMATE DERIVATIVE
EXPOSURE CALCULATION” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Reducing the risk of errors and saving your team time.[/bsf-info-box]
EXPOSURE CALCULATION” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Reducing the risk of errors and saving your team time.[/bsf-info-box]
[bsf-info-box icon=”Defaults-download” icon_size=”32″ icon_color=”#ff7230″ icon_style=”advanced” icon_border_spacing=”50″ title=”FULL TIME-SERIES EXPORT REPORTING AVAILABLE” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Enabling you to have a full audit trail of all calculations.[/bsf-info-box]
[bsf-info-box icon=”Defaults-bell” icon_size=”32″ icon_color=”#ff7230″ icon_style=”advanced” icon_border_spacing=”50″ title=”ALERTS FOR ANY CHANGES IN DERIVATIVE USE OVER TIME” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Ensuring you keep up-to-date with any changes in regulation.[/bsf-info-box]
[bsf-info-box icon=”Defaults-file-excel-o” icon_size=”32″ icon_color=”#ff7230″ icon_style=”advanced” icon_border_spacing=”50″ title=”COLLATE ALL DATA IN EASY-TO-USE EXCEL TEMPLATE” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Enabling straightforward report creation.[/bsf-info-box]
[bsf-info-box icon=”Defaults-file-o” icon_size=”32″ icon_color=”#ff7230″ icon_style=”advanced” icon_border_spacing=”50″ title=”ONE-CLICK XML REPORT GENERATION” pos=”left” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;”]Making submission to the FCA simple.[/bsf-info-box]
[ultimate_heading main_heading=”REPORTING TOOL OVERVIEW” alignment=”left” main_heading_margin=”margin-bottom:20px;” main_heading_style=”font-weight:bold;”][/ultimate_heading]
The report contains detailed information for each UCITS scheme, or sub-fund where applicable, that uses derivatives and is managed by the AFM, including:
- Gross long and short derivatives positions;
- Details of risk measures used;
- Information on fund leverage including average leverage, maximum expected level, usually expected level and internal maximum level; and
- Confirmation as to whether derivatives are being used for EPM purposes.
AFMs should submit additional reports at any time during the year if there has been a significant change to a fund’s risk profile since its last report.
REQUEST MORE INFORMATION
[ultimate_heading main_heading=”FREQUENTLY ASKED QUESTIONS” main_heading_margin=”margin-bottom:30px;” main_heading_style=”font-weight:bold;”][/ultimate_heading]
Q2: WHAT TYPE OF FUNDS ARE INCLUDED IN A DERIVATIVES USE REPORT?
The Derivative Use Report is applicable to UCITS funds only and sub-funds where applicable. Other types of funds such as NURS and QIS are not required to complete this report.
Q3: WHAT INFORMATION IS REQUIRED FOR A DERIVATIVES USE REPORT?
The following information is required to complete the Derivatives Use Report:
- The name and scheme (or, if applicable sub-fund) product reference number (PRN) of the relevant fund;
- The fund’s assets under management (AUM) and its gross long and short derivative positions (%);
- Confirmation as to whether the derivatives are used for investment purposes (as opposed to efficient portfolio management) purposes;
- Details of the risk measures used (commitment approach, absolute or relative Value at Risk);
- Information on the fund’s leverage, calculated according to EU guidelines, and the relevant fund leverage limits if defined in the prospectus, and
- Information on the types of derivative used by the investment manager
Further guidance notes on derivatives use reports can be found in the FCA Handbook COLL 6 Annex 3.
The FCA also recommends that managers review CESR’s Guidelines on Risk Measurement and the Calculation of Global Exposure and Counterparty Risk for UCITS (CESR/10-788) before completing the report.
Q4: WHERE DO I SUBMIT A DERIVATIVES USE REPORT?
The Derivatives Use Report should be submitted to the FCA via its GABRIEL system.
Q5: WHEN IS THE DEADLINE FOR SUBMITTING A DERIVATIVES USE REPORT?
The deadline for submission in 2019 is 12 December.
[ultimate_heading main_heading_color=”#ffffff” sub_heading_color=”#ffffff” sub_heading_font_size=”desktop:28px;” sub_heading_line_height=”desktop:34px;” sub_heading_style=”font-weight:300;” sub_heading_font_family=”font_family:Open Sans|font_call:Open+Sans|variant:300″]NEED HELP? SPEAK TO OUR EXPERTS TODAY ON +44 (0)28 9032 9736[/ultimate_heading]
[ultimate_heading main_heading=”GET IN TOUCH” main_heading_color=”#ffffff” sub_heading_color=”#ffffff” alignment=”left” main_heading_style=”font-weight:bold;” main_heading_font_size=”desktop:50px;tablet_portrait:40px;” main_heading_line_height=”desktop:60px;tablet_portrait:50px;” el_class=”accent-border-color accent-subtitle-color” main_heading_margin=”margin-bottom:30px;” sub_heading_font_size=”desktop:25px;” sub_heading_line_height=”desktop:35px;” sub_heading_style=”font-weight:700;” sub_heading_font_family=”font_family:Roboto Slab|font_call:Roboto+Slab|variant:700″ sub_heading_margin=”margin-bottom:35px;”]To find out more about our FCA Derivatives Use Reporting Solution then please contact us for more information.[/ultimate_heading][bsf-info-box icon=”Defaults-phone” icon_size=”24″ icon_color=”#ffffff” title=”+44 (0)28 9032 9736″ read_more=”title” link=”url:tel%3A%2B442890329736|||” el_class=”dt-phone” title_font=”font_family:Open Sans|font_call:Open+Sans|variant:700″ title_font_style=”font-weight:700;” title_font_size=”desktop:24px;” title_font_line_height=”desktop:24px;” css_info_box=”.vc_custom_1542190214233{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 15px !important;}” title_font_color=”#ffffff”][/bsf-info-box][bsf-info-box icon=”Defaults-envelope-o” icon_size=”24″ icon_color=”#ffffff” title=”info@funds-axis.com” read_more=”title” link=”url:mailto%3Ainfo%40funds-axis.com|||” title_font=”font_family:Open Sans|font_call:Open+Sans|variant:700″ title_font_style=”font-weight:700;” title_font_size=”desktop:18px;” title_font_line_height=”desktop:24px;” css_info_box=”.vc_custom_1542190267541{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 15px !important;}” title_font_color=”#ffffff”][/bsf-info-box]
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