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What is an Asset Manager | How does an asset manager make money | AML Documentation required - YouTube
Channel: KYC Lookup
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hello and welcome to another kyc lookup
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video
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where we bring you aml related content
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to help you
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enhance your knowledge in the fight
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against money laundering
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today we are going to explain what is an
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asset manager
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products and services they provide and
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if they are regulated
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but before diving into today's video be
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sure to subscribe
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so you don't miss out on any future
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videos oh
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and don't forget to leave us a comment
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with any suggested topics you would like
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us
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to cover in the future we also have a
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special announcement to make
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so be sure to watch until the end to
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find out what it is
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so on to today's video
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what is an asset manager
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an asset manager is someone whose role
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is to determine what investments to make
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or avoid on behalf of their customer in
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order to grow their clients portfolio
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investments may include a wide range of
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things
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like real estate commodities and mutual
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funds for example
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global asset management is big business
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and as of october 2020 it is believed
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that all
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assets managed by investment managers is
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close to 100 trillion dollars
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how does an asset manager make money
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asset managers make their money in a
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variety of ways
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some make their money through
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commissions or management fees
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some get flat fees and others through a
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performance fee
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asset managers come with their own set
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of expertise
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and so it's no wonder companies snap
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them up to generate big bucks
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take for example a drinks company or a
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tech company
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both for specialists in their own field
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but don't necessarily know how to invest
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their money
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in order to grow that's why they would
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hire an investment manager
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to take care of that side of the
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business for them
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who are the industry's big players
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unsurprisingly there are some huge
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players in the asset management industry
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and we are not talking about these
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companies managing millions or billions
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of dollars
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but trillions of dollars as of 2020
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blackrock is number one and managing
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investments to a staggering nine
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trillion dollars
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the vanguard group is next with just
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over six trillion dollars
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and ubs group coming in at number three
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with just
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over three trillion dollars being
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managed
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are asset managers regulated
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the short answer is yes asset managers
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globally
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tend to be regulated by the local
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conduct regulatory body
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in the country or countries where they
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operate
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the regulators are responsible for the
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functioning of the financial markets
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aiming to ensure honest and fair markets
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by protecting consumers
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the financial markets and promoting
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competition among the companies
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in the financial services industry
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some of the well-known regulators in the
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asset management industry
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are the financial industry regulatory
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authority
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also known as finra the securities and
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exchange commission
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sec the financial conduct authority
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fca the federal financial services
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authority
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barfin and the monetary authority of
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singapore
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mass despite most asset managers being
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regulated
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be fully aware of entering a
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relationship with an unregulated asset
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manager
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which although not common they do exist
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what documentation is needed at the time
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of onboarding an asset manager
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from an aml perspective the
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documentation or information required at
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the time of onboarding a regulated asset
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manager
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varies based on the country where the
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asset manager is being onboarded
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and the country where it is regulated
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however at a high level the information
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required would be the following
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constitutional documentation such as
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articles of incorporation
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articles of association bylaws
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certificate of incorporation or
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memorandum of association
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copy of its regulatory status such as
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countries renew the license
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on an annual basis so it's important to
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have the most
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up-to-date one in file
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ultimate beneficial owners as part of
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some of the new
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aml directives around the world
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regulated legal entities
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are now required to provide ownership
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information
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as most big asset managers are owned by
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other institutional clients
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it may not have individuals meeting the
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threshold required
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however in those scenarios it would be
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the person with significant day-to-day
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control
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who would be considered the ultimate
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beneficial owner such as the ceo
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or president controlling parties
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such as board of directors executive
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management
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or relationship contacts an
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identification of source of funds
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and wealth so let's recap
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an asset manager is someone whose role
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is to determine what investments to make
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or avoid on behalf of their customer in
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order to grow their clients portfolio
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investments may include a wide range of
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things like real estate
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commodities or mutual funds
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an asset manager would usually create
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revenue
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through commissions management fees some
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get flat fees
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and others through a performance fee
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well there you have it a basic
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introduction to what an asset manager is
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how they make money and the
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documentation required at the time of
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onboarding
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please tell us in the comments section
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what is your interpretation of an asset
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manager
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and what benefits or risks do you see
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by using them to grow your portfolio
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now for the special announcement
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mentioned at the start of the video
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we are now launching our very own online
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courses for you to take a more
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in-depth look at a variety of subjects
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such as introduction to aml beneficial
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ownership
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and customer risk rating for example so
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make sure you visit our website for
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further details
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and let us help you connect the dots in
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kyc
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thank you for watching the video and if
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you made it this far
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don't forget to like and subscribe to
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