Buy Side Risk Managers Forum And Capital Market Risk Advisors Publish Final Form Of "Risk Principles For Asset Managers"
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February 29, 2008
TO: RISK MANAGEMENT ADVISORY COMMITTEE No. 2-08 RE: BUY SIDE RISK MANAGERS FORUM AND CAPITAL MARKET RISK ADVISORS PUBLISH FINAL FORM OF "RISK PRINCIPLES FOR ASSET MANAGERS"
As you may recall, last August, the Buy Side Risk Managers Forums (BSRMF) and the Capital Market Risk Advisors (CMRA) solicited comments from the Institute’s Risk Management Advisory Committee on their draft “Risk Principles for Asset Managers.” [1] In response, the Committee submitted a detailed comment letter that recommended a variety of changes to the draft. [2] While some of the Committee’s technical changes were incorporated into the draft, many of our more substantive comments were not. In part, this was the result of the document being drafted to apply to asset managers generally rather than tailored to mutual fund asset managers.
On February 25th, the BSRMF and the CMRA published the final version of their document, a copy of which is attached. While the BSRMF and CMRA asked the Institute to endorse the final draft, we were unable to do so because their timeframe did not permit us sufficient time within which to consult the RMAC about such endorsement.
Upon completion of the RMAC’s current project, which involves producing a risk primer for mutual fund directors, the Committee expects to revisit the BSRMF’s and CMRA’s “Risk Principles for Asset Managers,” with a view towards tailoring it to apply more specifically to mutual fund asset managers.
Tamara K. Salmon
Senior Associate Counsel
endnotes
[1] See Institute Memorandum to Risk Management Advisory Committee No. 3-07 [No. 21421], dated August 1, 2007.
[2] See Institute Memorandum to Risk Management Advisory Committee No. 4-07 [No. 21831], dated October 11, 2007.