AIMA publishes guide to fund administration

Published: 13 July 2017

The Alternative Investment Management Association (AIMA) has published a guide for alternative investment managers to use when choosing a fund administrator. The guide also provides guidance on how managers should periodically assess their existing administrators.

The AIMA guide, previously published in 2009, has been revised to reflect changes to standards for cyber security, recordkeeping and anti-money laundering checks. It takes account of the fund and investment manager's relationship with the administrator in light of the changes imposed by the Alternative Investment Fund Managers Directive (AIFMD) in Europe in relation to valuation processes and systemic risk reporting and the Dodd-Frank Act in relation to systemic risk reporting and record keeping, for example.

The guide also reflects the modern fund administration sector, which has expanded as hedge fund managers and other alternative investment managers have diversified and as industry practices around transparency and outsourcing have evolved.

The guide is sponsored by PwC and SS&C GlobeOp. The Irish Funds Industry Association (Irish Funds) was a member of a working group that helped to produce the guide.

AIMA’s 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.”

Edwin Chan, Senior Director, EMEA Business Development 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 & Wealth Management Partner, PwC Ireland, said: “We're delighted to have been able to actively participate in the production of this updated sound practice guide for the selection and periodic assessment of administrators. 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."

Note to Editors

The AIMA Guide to Sound Practices for the Selection and Periodic Assessment of Administrators is available to members of AIMA and Irish Funds. An executive summary is available here.