ASSET MANAGEMENT MOVES INTO THE SPOTLIGHT

Figure 19 CACeIs/pwC AssUrANCe modeL

Risk-based Performance over fees • Obligation to outperform • Necessary to align fees to performance and investor interests • Innovative fee structuring could result in a better take up

Governance • Ensure con icts of interest between the investor and the asset manager are identi ed and prevented • Necessary to ensure independent veri cation of controls and procedures

R i s k - b a s e d p e r f o r m a n c e o v e r f e e s

G o v e r n a n c e

PwC - CACEIS Assurance Model

Transparency • Full transparency in terms of risks, performance, holdings and fees • Tailor reporting toward a more transparent and explanatory framework

Operational strength • Demonstrate ability to deal e ectively with market and business challenges to ensure sustainable performance • Uphold expertise and advisory role • Ensure IT systems and processes are solid and adapted to the nature and volume of activities

O p e r a ti o n a l s t r e n g t h

T r a n s p a r e n c y

Source: CACEIS/PwC, " Taking the Reins " , 2012

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