A Better Grasp of Non-financial Risks

Table of Contents

Abstract..........................................................................................................................................5

Executive Summary....................................................................................................................7

1. Large Non-financial Risks in Retail Funds Finally Make a Mark on the Regulatory Agenda .......................................................................................................15

2. The Rise of Non-financial Risks in the Fund Industry ........................................ 25

3. Risks and Responsibilities in the Fund Industry ................................................35

4. Which Possible Protection of Unit-Holders?.......................................................55

5. Conclusion....................................................................................................................65

Appendices........................................................................................................................69

References.........................................................................................................................77

About EDHEC-Risk Institute ........................................................................................81

About CACEIS ..................................................................................................................85

EDHEC-Risk Institute Publications and Position Papers (2007-2010).................87

We thank CACEIS and Isabelle Lebbe, Michael May, Stéphane Puel, Bruno Dauty, Alain Dubois, Arnaud Stevenson and Timothy Spangler for their useful comments. Any remaining errors or omissions are the sole responsibility of the authors. Printed in France, December 2010. Copyright EDHEC 2010. The opinions expressed in this survey are those of the authors and do not necessarily reflect those of EDHEC Business School and CACEIS.