New Rule Versions Explained

One common question we receive from clients is why we release new rule versions.

When our understanding of the rule changes

The first reason we might release a new rule version is when our understanding of the rule changes. This can result from client discussion in the Rule Commentary, an update to Allen & Overy’s interpretation on an issue, or a Rule Audit.

Rule Commentary

The Rule Commentary feature allows clients to discuss and comment on any of our rules. Clients can share regulatory knowledge and experience from some of the biggest names in the international finance industry. If clients bring to our attention (with valid legal justification) that a rule should be updated, our Content team will update the rule accordingly if the legal basis is valid. We sometimes involve A&O in these discussions as well to validate updated views raised by a client.

Allen & Overy’s Interpretation

Sometimes A&O may update their view on a regulatory item following conversations with regulators, feedback from Aosphere users (including the FundApps content team), and their own annual reviews of their memos. When A&O’s legal interpretation on an issue changes, they will update us with their findings or release a new version of their memoranda. We will then code and release an updated rule version accordingly.

Rule Audit

Within FundApps, the Content team periodically reviews our rules to make sure they cover the right instruments and calculate the correct result based on A&O’s memo interpretation. If any improvements are identified, these are incorporated as part of these audits.

Underlying legislation changes

A second reason why we might release a new rule version is if underlying legislation changes. If any legislation changes, new memos are released by Allen & Overy on their Aosphere platform. In this case, we are automatically alerted every time a new memo is released (so are our clients), our Content team will review the rule, and then new updates to the rule will be made accordingly for us to release a new rule version.

 

When we release a new rule version, it will be up to you to approve the rule. Until the newest rule version is actively approved, the old version will continue to run. This gives you the chance to review the new rule and raise any questions before it impacts your results. You can read more about approving new rules here.

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