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Tuesday, 21 January 2020

FRA mulls new regs for asset, portfolio managers

REGULATION WATCH- FRA mulls new regs for asset, portfolio managers: The Financial Regulatory Authority (FRA) is studying new regulations for asset and portfolio managers in a bid to strengthen investor protection and improve market governance, Al Mal reports, citing anonymous sources.

Preventing investor interference: One of the proposals on the table is a new set of regulations to prevent investors from interfering in the investment decisions of fund managers. The proposal was reportedly met with disagreement from some members of the FRA’s advisory committee, who argued that investors should have the right to prevent a fund manager from selling or buying a security if they see fit.

Surprise inspections: Another idea being floated is the introduction of surprise inspections that could lead to disciplinary measures for those found in regulatory violation. This case-by-case approach would avoid the need to introduce new market-wide regulations that could over-burden all companies operating in the market.

Discussions will continue this week, and are expected to wrap up in “a short period of time,” the sources said.

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