The Alternative Investment Management Association (AIMA) has published a new guide to fund administration, aimed at alternative managers choosing between providers.
Compiled through consultation with a working group of industry executives, the guide looks into best practice when addressing an administrator’s services and practices, including guidance for managers looking for new providers or assessing their existing mandates.
Previously published in 2009, the guide has been revised to reflect changes in the industry, including around cyber security, record keeping, and regulations such as the Alternative Investment Fund Managers Directive (AIFMD) and the Dodd Frank Act.
It explores practices around transfer agency, anti-money laundering and know-your-client checks, fund accounting and outsourcing of middle-office services.
It also covers financial, regulatory and systemic risk reporting and monitoring.
According to AIMA, the new guide is intended to be more reflective of the “modern fund administration sector”, which has expanded as alternative investment managers have diversified and as practices around transparency and outsourcing have evolved.
AIMA CEO Jack Inglis said: “Fund administrators are an essential part of the alternative investment ecosystem and their role has never been more important as regulations and standards have evolved since the financial crisis. We believe our new guide will be a valuable tool for alternative investment managers when it comes to navigating this complex but vital space.”
The working group included representatives from PwC and SS&C GlobeOp, which co-sponsored the guide, plus Irish Funds, Morgan Stanley Fund Services, Deutsche Bank, and more.
Edwin Chan, senior director for business development in Europe, the Middle East and Africa at SS&C GlobeOp, said: “The working group suggested investment managers choose an administrator based on the following criteria: the administrator provides full transparency, is a leader in technology development, and has the capacity to become a true partner.”
“To have a successful long-term partnership with an administrator, an investment manager should choose a provider that can meet current needs and can scale to support future needs. Today’s alternative fund management environment is evolving quickly. This guide will help investment managers navigate the changes efficiently and confidently.”
Ken Owens, asset and wealth management partner at PwC Ireland, added: “Ireland is the leading global centre for the administration of alternative funds and we are sure that this updated guide will be a valuable tool both to the fund administration industry and to the managers and other stakeholders who use the services of, or interact regularly with, fund administrators."
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