Due Diligence Questionnaires
For 20 years, AIMA has been providing guidance and standardisation for its members around the world in the form of Due Diligence Questionnaires (DDQs).
AIMA's DDQs assist a) investors in assessing the fund investments they might make and b) fund managers in their choice of service providers, directors and boards of those funds. The first AIMA DDQ - for investors conducting due diligence on hedge fund managers - was published in 1997. It was a response to requests from investors for a standardised set of questions. Since then, the DDQs have gone on to become the industry-standard template. The AIMA DDQs can be downloaded by AIMA members below.
The new 2017 DDQ for investment managers has multiple modules. What is the easiest way for me to get started?
In situations where the investment manager is managing open-end funds, the easiest place to start is the Basic Open-End Setup and then add or replace modules as needed. Similarly, if the investment manager is managing closed-end funds, the easiest place to start is the Basic Closed-End Setup. Platform providers should start with the Basic Platform Provider Setup. Third party sub-advisory relationships should start with the Basic Sub-Adviser Setup. If the sub-advisory relationship is with an affiliate, however, consideration might be given as to whether it makes sense to discuss the sub-adviser as part of the “investment manager” for purposes of the modules regarding the investment manager.
The new form is in a substantially different format from the prior versions and contains lots of questions. AIMA anticipates it will take most managers several months to work through the new form and fill it in. With the launch happening over the course of October/November 2017, it is reasonable to expect that investment managers will begin using the new form for their regular update to occur in 2018.
How will DDQ platforms verify whether my firm is an AIMA member and what happens to DDQs completed on the platform if my firm is no longer a member?
We will also notify the applicable platform providers when a previously verified user subsequently chooses not to renew. This will mean that the platform provider will be required to discontinue future access to the template documents, although previously distributed forms of the DDQ completed during the period of membership are permitted to be maintained.