Due Diligence Questionnaires
For more than 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.
Q: When will the 2019 versions of the Investment Manager DDQ modules be available to use and will I be able to access them?
A: The revised versions of the modules included in the Illustrative Questionnaire for the Due Diligence of Investment Managers that AIMA has been consulting with members on over the last several months will be available for members in good standing to use from 7 February 2019. They will be accessible from the DDQ modules table below. Members in good standing may continue to use the 2017 versions if they prefer and those will still be accessible through a link that will be provided in these FAQS.
To be a member in good standing, a member must have paid its 2019 renewal invoice or become a new member in 2019. AIMA will be shutting off website access for any members that have not paid their 2019 renewal invoice by 6 February. Access to the website will be restored upon subsequent payment of the 2019 renewal notice. In the interim members not yet in good standing for 2019 will not have access to the revised Investment Manager DDQ modules or any other materials on the AIMA website.
OTHER DDQ FAQs
23 May 2019
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Will blacklines showing the differences between the 2017 and 2019 versions of the modules in the Investment Manager DDQ be available?
The 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. For Canadian Alternative Mutual Funds, UCITS and U.S. mutual funds, the Liquid Alternaitves Fund DDQ may be the easiest place to start.
The new form is in a substantially different format from the prior versions and contains lots of questions. We anticipate it will take most managers time to work through the new form and fill it in. It is reasonable to expect that investment managers will begin using the new form in 2018 or 2019.
How do the Short Form Manager Module and Short Form Fund Module relate to the other modules in the Illustrative Questionnaire for the Due Diligence of Investment Managers?
- Governance of the Investment Manager; and
- Operations and Risk Management,
The Short Form Fund Module represents a condensed version of the Open-End Private Fund Module and can be used in lieu of that module for open-end private funds and should be used in lieu of that module for any liquid alternatives funds.
Investors receiving information on one of these short forms should consider whether and to what extent they need or want more information than has been provided.
How will DDQ platforms verify whether my firm is a 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.