Why is it necessary to approve new rule versions?
New rule versions will periodically be released when our understanding of the rule changes. This is usually prompted by client discussions in our Rule Commentary feature, updates to Allen & Overy’s (aosphere) interpretation, rule audits, or when the underlying legislation changes. Each of these scenarios is described in further detail below.
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 Allen & Overy in these discussions as well to validate updated views raised by a client.
Allen & Overy’s Interpretation
Sometimes Allen & Overy 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. Whenever Allen & Overy’s legal interpretation of 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.
Within FundApps, the Content team periodically reviews our rules to make sure they cover the right instruments and calculate the correct result based on Allen & Overy’s interpretation. If any improvements are identified, these are incorporated as part of these audits.
Underlying Legislation Changes
Another reason why we might release a new rule version is if the 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 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. The old version will continue to run until the newest rule version is actively approved. 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.