Mandatory functions

Fund regulated governing body

A Fund, organized as an investment company, is a legal entity. It must have a regulated governing body. Any regulated fund other than self-managed furthermore requires a regulated management company or AIFM (Man.Co) to manage it.

PCM as a “Third Party Management Company”

Whether you are considering setting-up for the short-term while you evaluate your options, or you are strategically investing in Europe for the long-term, our Management Company (PCM) can assist you.

Our independent PCM Management Company is an operationally ready and economically viable solution to host the launch and on-going management of your fund, as well as provide support to in-house management companies that require additional assistance, governance and substance.

The Fund Management Company

  • Must execute by itself the three mandatory primary substance building blocks that are: Supervision of delegated functions, Risk management and Investment Management oversight,
  • Must delegate certain mandatory external functions (Custodian bank, Auditors, Paying Agent),
  • May delegate certain of its collective management functions (e.g. Fund administration, Transfer Agent, Distribution Network, Investment Management, …) and may appoint an external Investment Advisor,
  • Must monitor the activities of its delegated functions, and is responsible for the appointment and oversight of the service providers.

Delegation of activities and limitations

A Management Company/AIFM may delegate some functions, to achieve a more efficient conduct of its business.

Type Activities that may be delegated Activities that cannot be delegated
UCITS Management Company
  • Fund Administration
  • Register & Transfer Agent
  • Portfolio Management
  • Marketing
  • Risk management
  • Complaints handling
  • Compliance function
  • Internal audit
  • Operation of the IT system
  • Distribution network
  • Definition of the risk profile, and interpretation of the risk management analysis, including corrective measures
  • Implementing the best execution policy, and monitoring
  • Ensuring it has all of the necessary supporting information for the determination of a probable fair value
  • Choice of service providers and monitoring of delegated functions
AIFM Similar to above (UCITS) provided that Limitations are respected. Limitations: Delegation not permitted to the extent that the management body no longer:

  • Retains the necessary expertise and resources to supervise the delegated tasks effectively and manage the risks associated with the delegation;
  • Has the power to oversight the delegated functions, in particular in relation to the implementation of the general investment policy 
and strategies, to inquire, inspect, have access, or give instructions to its delegates.