GLOBAL - Rick Di Mascio, chief executive for Inalytics Limited and chair of the T-Charter, has launched a scathing attack on transition managers for dragging their feet over agreeing the final version of the charter.
Speaking yesterday at the Global Pensions Transition Management Forum 2007, he said he had hoped to be able to present the final version of the controversial T-Charter at the conference. However, he added it would "probably" be finished soon.
He likened the process to a marathon in which the runners were "approaching the stadium for the last lap", but warned that elements in the transition management industry wanted to continue drafting the charter for as long as possible, despite it being "good enough" for use.
The T-Charter is designed to set out a clear set of principles for transition managers to follow to ensure fairness when transitioning their clients' assets. It has been written to inform fund trustees on a range of the key issues they need to consider such as pre-hedging when selecting transition managers.
Originally, the charter was intended to be legally binding but this was changed to a voluntary code of practice after it proved extremely difficult to encompass the different business models and regulatory regimes that the industry operates under. The original legal draft of the charter completely omitted the principle the client comes first, at odds with the stated policies of most of the industry.
Di Mascio also said that the current version of the T-Charter has been substantially simplified to explain, in plain English, the various steps and considerations that should be taken into account when selecting transition managers.
Calling it a "road map" of issues, he warned the industry that many pension funds were already using the principles of the document.
In his opinion, the current version charter substantially met the needs of clients and it was time the industry recognised that by pulling together.
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