Day 1 8th December
Day 2 9th December
Day 3 10th December
For more information see the LRM Masterclass Brochure
Day 1 8th December
Day 2 9th December
Day 3 10th December
For more information see the LRM Masterclass Brochure
IOB is delighted to introduce the Liquidity Risk Management in Investment Funds masterclass.
View the masterclass brochure.
Many open-ended investment funds provide daily liquidity to their investors. Managing the fund portfolio in order to ensure that a fund is able to satisfy investor redemption requests is a fundamental obligation of fund managers. However managing fund liquidity is important for any open-ended fund, irrespective of the redemption frequency and it is equally important for all funds, both open and closed, in order to ensure that they can meet other types of liquidity related obligations, including margin calls or creditor demands of whatever nature.
Liquidity risk management has been under the microscope of global regulatory authorities for some time and this continues to be the case, particularly in light of recent events arising from the impact of COVID-19 on financial markets.
The masterclass is designed to provide participants with:
• An understanding of liquidity risk and liquidity risk management in the context of investment funds;
• An understanding of the regulatory framework and issues considered by macro-prudential authorities;
• A practical insight into the operation of a liquidity risk management system and challenges encountered.
The masterclass will be particularly relevant to directors, senior managers and staff within fund management companies (i.e. UCITS ManCOs and AIFMs), directors of self-managed funds and all other industry professionals within fund service providers.
The programme is delivered on the mornings of 8th, 9th, 10th December 2020, from 8.30 to 10.30am. The masterclass is a live event delivered via Zoom.
€210 for IOB members
€250 for non-members
Accredited Funds Professional - 4 hours
Chartered Banker - 3 hours
CIFD - 4 hours
FCOI - 4 hours
LCOI - 4 hours
Professional Banker - 3 hours
Alastair Sewell CFA - Head of Fund and Asset Manager Ratings for EMEA and Asia-Pacific at Fitch Ratings
Alastair Sewell is head of fund and asset manager ratings for EMEA and Asia-Pacific at Fitch Ratings. He has been in this role since 2017, having previously held roles with increasing levels of responsibility in the fund and asset manager rating group since 2008. In this role he has overall responsibility for all ratings and research on funds and investment managers in these regions. Alastair’s coverage includes all areas of investment management, with specialisms in money market funds and liquidity risk.
Prior to his current role, Alastair was an analyst in Fitch’s structured finance division, responsible for rating collateralized debt obligations and similar vehicles. Alastair joined Fitch in 2004. Prior to Fitch he began his career at a UK local authority.
Alastair earned an MBA with distinction from the University of Bath and a BSc from the University of Bristol. He is a CFA charterholder. Alastair is based in London.
Antonio Barattelli - Team Leader for Investment Management within the Investors and Issuers Department
Antonio Barattelli joined ESMA in August 2011 and he's Team Leader for Investment Management within the Investors and Issuers Department. Since May 2018 Antonio leads the work of the Investment Management team dealing with the EU legislation and asset management (including the UCITS Directive, AIFMD and MMF Regulation), while previously he worked in the team with focus on various topics, including remuneration and depositary-related matters.
Prior to joining ESMA, Antonio was a senior associate at a major law firm in Luxembourg where he advised a wide range of international clients on setting up investment funds. He qualified as a lawyer in Italy and was registered as an EU foreign lawyer in Luxembourg.
Antonio holds a law degree from the University of Padua, a master degree (DESS) in European Litigation from the University of Luxembourg and the University of Strasbourg "R. Schuman" as well as a Postgraduate Diploma in EU Competition Law from the King's College (London).
Conor Kilroy - Regulatory Affairs Manager at Irish Funds
Conor Kilroy is a Regulatory Affairs Manager at Irish Funds. Since joining in September 2019, Conor has been working closely with a number of asset management working groups with liquidity being a particular focus for the Investment Risk working group.
Prior to joining Irish Funds, Conor worked as Head of Investment Servicing for DMS Governance within their MiFID entity. Previous to this role he also worked within the DMS risk team. Conor began his career in fund administration working across multiple fund types in both the mutual and hedge fund space.
Conor is FRM certified by the Global Association of Risk Professionals and a member of the EFAMA Management Company Regulation and Services standing committee.
Eoin FitzGerald - Managing Director and Country Head of Brown Brothers Harriman in Ireland
Eoin FitzGerald is a Managing Director and Country Head for Brown Brothers Harriman in Ireland. Eoin has over 30 years of financial services experience having previously served as a Managing Director at Morgan Stanley and as a Director of AIB/BNY Fund Services (Ireland) Limited (now BNY Mellon Fund Services (Ireland) Limited).
Eoin is a member of the Consultative Working Group at the Investment Management Steering Committee of the European Securities and Markets Authority (ESMA). He is also a member of the Council of Irish Funds and of the IFSC Funds group.
Eoin is a director of Brown Brothers Harriman Trustee Services (Ireland) Limited, Brown Brothers Harriman Trustee Services (Hong Kong) Limited and Brown Brothers Harriman Institutional Trust Company of New York, LLC. He also serves on the board of the funds industry charity, Basis Point.
Eoin is a graduate of University College Dublin.
Martina Kelly - Director of Funds at IOB
Martina Kelly is Director of Funds at IOB having joined in January 2020. Prior to that she was Head of Markets Policy Division within the Central Bank of Ireland with responsibility for the formulation of policy in relation to investment funds, investment firms, markets and market infrastructure.
Martina has considerable experience in investment funds policy and regulation having led the Central Bank's work in this area for many years. In that capacity she was directly involved with the development of the Irish regulatory regime applicable to funds and fund service providers.
Patricia Dunne - Head of Securities Markets Supervision Division in the Central Bank of Ireland (Central Bank)
Patricia Dunne is Head of Securities Markets Supervision Division in the Central Bank of Ireland (Central Bank). This division is responsible for the supervision of securities markets including market transparency, market integrity and market abuse and the authorisation and supervision of Irish authorised investment funds.
Patricia has held various roles within the Central Bank including the authorisation, supervision and policy of investment firms and investment funds. She has also been directly involved in the development and implementation of the Central Bank's risk based approach to supervision (The Probability Risk and Impact System - PRISM). Patricia has also worked extensively with the European Securities Markets Authority (ESMA) in the development of the European regulatory and policy framework for Investment funds and their service providers.
Robin Creswell - Managing Director at Payden and Rygel
Robin Creswell is a Managing Director at Payden and Rygel and is a member of the firm's board of directors. He is responsible for the firm's London office; Payden & Rygel Global Ltd.
Creswell's 38-year career in the financial industry began in banking. He was then a leading figure in the development of the global hedge fund and derivatives industry in the 1990s. He was responsible for launching the first publicly offered hedge funds in a number of jurisdictions, including Japan, Australia and Hong Kong.
Prior to joining Payden & Rygel, Creswell was responsible for global distribution at ED&F Man. Subsequently he established the fund management company, Greystone International Ltd., for Chicago-based futures broker Gelderman, Inc. later acquired by the Man Group.
Robin Creswell was a Trustee of the Charities Aid Foundation until 2018 where he chaired the Investment Advisory Committee and is also a Trustee of a number of other non-profit organisations. He is a Fellow of the Securities & Investment Institute and a member of the CFA Society of the UK.
Select a day for more information on the curriculum on that day:
8.30am to 8.35am Welcome - Kevin Gallen, Deputy Chief Executive, IOB
8.35 to 9.00am Introduction to Liquidity Risk Management - Eoin FitzGerald
What is liquidity risk management (LRM)
What is LRM in the context of investment funds and how it differs from the sell side liquidity risk
How it is part if the broader set of investment risks
How it is applied differently in different fund types
9.00 to 9.35am Regulatory Landscape - Martina Kelly
What rules and guidance apply - UCITS, AIFMD, IOSCO Principles and Good Practices; ESMA LST Guidelines
Overview of the macroprudential focus on the potential for liquidity problems in funds leading to a systemic impact
G20 mandate in 2011; FSB focus on NBNI GSIFIs - 2017 recommendations
Views of other authorities (ECB, Bank of England, AMF)
Where regulation might head next (results from ESMA CSA and IOSCO review of implementation of IOSCO principles)
9.35 to 10.00am Fund Governance: Liquidity Risk Management Framework - Conor Kilroy
The Irish Funds View
Liquidity risk through the funds lifecycle
Liquidity planning and strategy
Liquidity risk identification, assessment, monitoring and controls
Liquidity stress testing methodology
Liquidity crisis management
Communication and escalation
10.00 to 10.15am Question time
8.30 to 8.40am Welcome back - Recap Day 1 - Eoin FitzGerald
8.40 to 9.10am Liquidity Risk Governance Framework - Patricia Dunne
What is liquidity management framework:
Product design; stress test, launch, monitoring, application of liquidity management tools (LMT)
Roles and responsibilities - 1st, 2nd, 3rd lines; Board, Liquidity Committee, Product Committee, Risk Committee
Liquidity limits and escalation of breaches
Application of LMTs and governance around their use
9.10 to 9.30am Liquidity Risk Assessment and Identification - Alastair Sewell
Asset side liquidity
Liability side liquidity
Combined asset and liability risk metrics and LST scenarios
Peculiarities of closed end funds
Peculiarities of ETFs
9.35 to 10.15 am Liquidity Contingency Planning and Crisis Management - Alastair Sewell and Patricia Dunne
Genesis of a liquidity crisis
Great financial crisis
Contagion across financial sectors
COVID 19 and how this is playing
Fixed income markets
Role of Central Banks
10.15 to 10.30am Question time
8.30 to 8.40am Welcome back - Recap Day 1 and 2 - Eoin FitzGerald
8.40 to 10.00am Liquidity Risk Management in Practice - an Asset Manager's perspective - Robin Creswell
Maintaining trust in the liquidity of UCITS and open ended funds - matching fund assets to fund liabilities - a collective obligation of the industry
Challenges and Suitability - Asset Class Liquidity - Structural Liquidity Distinctions - Real Estate, Equities, Fixed Income
Structural failures in fund portfolios - a case study in shareholder illiquidity
UCITS Liquidity Policies in practice and Stress Testing
What does 'worst case' mean and can we manage to that end? Or manage to the data?
Managing flows through a Liquidity Event - 'shareholders versus subscriptions and redemptions'
10.00 to 10.20am Liquidity Risk Management - an ESMA perspective - Antonio Barattelli
Regulatory landscape and areas under particular scrutiny
Supervisory convergence - current activities
General outlook - 2021 and beyond
10.20 to 10.30am Question time and closing remarks - Eoin FitzGerald