Management Company

From Open Risk Manual


Management Company. Any investment company that sells and manages a portfolio of securities other than a face-amount certificate company or unit investment fund.


  • Management companies allow investors to pool their capital with that of other investors in order to purchase professionally-managed groups of diversified securities.
  • A management Company is a Legal Entity that participates, jointly with the Custodian, in the establishment of the Issuer of securitised notes


The Management Company represents the Issuer towards third parties and in any legal proceedings, whether as plaintiff or defendant, and is responsible for the management and operation of the Issuer. Subject to supervision the Management Company may take steps which it deems necessary or desirable to protect the Issuer’s rights in, to and under the Transferred Receivables. The Management Company shall be bound to act at all times in the best interest of Noteholders.

Other responsibilities of the Management company include

  • representing the Issue in purchasing assets
  • managing Issuer Bank Accounts
  • calculating amounts (Calculation Agent)
  • managing Issuer Available Cash investment
  • preparing required reports to investors
  • deciding on Issuer liquidation



Issues and Challenges


See Also


  • This information is provided as is without any representation of correctness, completeness or suitability for any purpose whatsoever. Refer to actual securitisation prospectuses for the definitive terms applicable in each case
  • Definitions, detailed descriptions and other content may change at any time as further examples or relevant aspects are introduced
  • This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with or correctly interprets the concepts covered by the FIBO ontology.

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