Enhanced Activities for Fund Management Entities (FMEs) Registered with IFSCA
Upon acquiring registration with the International Financial Services Centres Authority (IFSCA), a Fund Management Entity (FME) receives the endorsement to undertake an array of activities in addition to launching various schemes. These diversified responsibilities give them a robust and versatile entry into the world of fund management.
Permissible Activities Across FME Categories
Each category of FME possesses unique capabilities in terms of the permissible activities under the Regulations. Let’s delve into these intricacies.
Launching an Exchange Traded Fund
In the realm of Exchange Traded Funds, only Registered FME (Retail) category is eligible for launching. While the Authorised FME and the Non-Retail Registered FME are not privy to this responsibility, the Retail Registered FME category comes into action, broadening its role beyond scheme launching and fund management.
Offering Portfolio Management Services
Under these Regulations, offering Portfolio Management Services becomes a shared responsibility between both categories of Registered Fund Management Entities: Retail and Non-Retail. This opportunity allows for a greater spectrum of operation for these FME categories, leaving the Authorised FMEs devoid of this opportunity.
Launching a Special Situation Fund
In the context of launching a Special Situation Fund, the mandate lies exclusively with the Registered FME (Retail) category, thereby giving them a unique edge in the fund management landscape.
Role as the Investment Manager of an Investment Trust
One of the roles that stand out pertains to being the Investment Manager of an Investment Trust. The privilege of filling this position applies exclusively to the Registered FME (Retail) category, clearly distinguishing its responsibilities from those of the other types of FMEs.
Launching an Environment, Social, and Governance (ESG) Scheme
Focusing on sustainable investment, launching the ESG Scheme is yet another responsibility bestowing only the Registered categories of FMEs. By undertaking this initiative, these FME categories also get a chance to contribute towards socially responsible investing.
Issuing Public Units and Undertaking Private Placement of Units
Public issuances of units falls under the ambit of all FME categories. This universal permit paves the way for an expansive investment landscape for investors.
On the other end of the spectrum, Private Placement of Units stands as a common responsibility shared by all FME categories, thereby marking a homogeneous sector in an otherwise diverse role allocation.
Gearing Up for a Multifaceted Role
Registering with IFSCA empowers a FME to undertake a multitude of activities, many of which go beyond the core of fund management and certain schemes’ launching. These varied roles not only provide a broader operational spectrum but also instill a dynamic functionality to each category of FME.
Whether it is launching Exchange Traded Funds or offering Portfolio Management Services, acting as the Investment Manager of an Investment Trust, or launching the ESG Scheme, the different categories of FMEs get unique opportunities to leave their mark in every corner of fund management.
