AIFMD -  Risk Management Functions

As a result of under the Alternative Investment Fund Managers Directive ("AIFMD"), fund managers are now required to segregate their risk management functions internally, or delegate this function to a qualified third party. IRMS has been set up in such a way that it is able to provide delegated risk management functions. Our approach to delegation is to build the required risk management systems and process around your existing management structure, so that we can operate in a way that causes minimal disruption to your existing business. We believe that complying with the risk management requirements of AIFMD need not be overly onerous or costly.

 

EMIR Trade Reporting

The European Markets Infrastructure Regulations ("EMIR") are a direct result of a G20 initiative to increase regulatory transparency of the OTC derivatives market, and came into force on the 12th August 2012. We expect that most of our clients to be classified as 'Non Financial Counterparties' which means they can avoid the more onerous parts of these regulations, including central clearing and daily exposure reporting. However certain parts of these regulations, such as trade reporting and portfolio reconcilliation, will apply to all users of OTC derivatives. IRMS is able to assist in the following ways;

  • Review and advise on bilateral EMIR agreements put forward by your banks

  • Advise on FC/NFC classification and associated implications

  • Assistance in LEI applications

  • Assistance in trade reporting (if not provided by bank counterparty)

  • Verifying portfolio reconciliation data

Project Management and Hedging Advice

If you are required to put in place interest rate, or foreign exchange hedging, getting the right advice at the right time is absolutely critical. Inappropriate hedging can destroy your returns or impair your ability to sell assets. The recent debacle involving hedging products to SME's is proof of this! At IRMS we take the time to understand your business plan so that we provide you with the very best advice. It is increasingly the case that important decisions about the hedging are taken before the loan is even documented; the earlier you speak to us, the better! We can;

  • assist you with the negotiation of commercial terms

  • provide advice on hedging strategies (including assessment of covenant and counterparty risk)

  • provide a breakdown of hidden transaction costs and negotiate improved terms

  • review pre-trade and post-trade documentation

  • provide live pricing support at execution and assistance in trade reporting

 

Valuation and Accounting Support 

  • Inc. Hedge Accounting, IFRS 7 disclosure tables, IFRS 13 valuations (CVA/DVA)

To enquire about the services we offer, or to find out how we can assist your business, please give us a call or send us an email via the CONTACT page

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