All too often, fund managers hold off switching their fund administrator until the pain of staying with their current provider exceeds the perceived pain of leaving.
Typically, this point is reached when poor service begins to impact investors. By then, sub-optimal fund administration is already negatively affecting your business.
By conducting an annual review with your third-party fund administrator, you can strengthen the partnership with them. Ocorian proactively engages with our clients for regular assessment of our services, to ensure not only consistency of quality and timeliness, but also to continuously supporting our clients' growth and ambition by aligning our product development roadmap to their emerging needs.
Ocorian recommends regular, in-depth fund administrator reviews for the following five reasons:
1. Your first duty is to your investors
Reviews ensure you are fulfilling your fiduciary responsibility to provide investors with the best value possible. As your investors will often be institutions with their own fiduciary responsibilities, this helps you to serve them.
2. The person who appointed your fund administrator may not work directly with them
Reviews facilitate internal communication among teams about satisfaction levels with your current provider.
3. Knowledge is power
Reviews allow you to identify any areas where your service provider is not meeting your expectations and address those issues with them. If it is unable or unwilling to meet your demands, that is a red flag that it may be time to switch.
4. The market changes frequently
Reviews allow you to assemble an up-to-date picture of your current position . The best choice today for you and for your investors today may be different from when you originally selected your provider as your requirements evolve.
5. Regular reviews are your insurance policy
Reviews keep your provider on its toes, reducing the likelihood of error. They also give you the comfort of knowing you have done everything you could to ensure best practice should an error occur.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
