Changing fund administrators can be a complex decision, but it doesn’t need to be a difficult one. With careful consideration and planning, changing administrator can lead to much improved performance and greater success for your fund.
Whether it is due to cost concerns, dissatisfaction with the current provider, or other reasons, fund managers must take a strategic approach to ensure a smooth transition. Waystone outlines some key considerations to keep in mind when changing fund administrator:
Firstly, identify the reasons to change your fund administrator. This could be due to a lack of transparency, poor communication, high fees, or inadequate services. Understanding the underlying issues will help you make an informed decision and ensure a successful transition.
Next, conduct thorough due diligence. This includes evaluating the provider’s expertise, technology, infrastructure, and regulatory compliance. It is also important to check the provider’s track record, client base, and references.
When choosing a new fund administrator, it’s important to consider their expertise and experience. Look for a provider that has a strong track record of managing funds similar to yours and can offer the right level of support and guidance. Also, consider the reputation of your potential fund administrator. Look for a provider that has a strong reputation in the industry and has a track record of providing exceptional service to their clients.
At Waystone, we believe we are entering an era where administrators must take accountability for their actions. Managers can remove this risk by engaging administrators that sign up to detailed deliverables in legally binding agreements to ensure that their funds are managed appropriately.
Savvy fund managers are demanding technology maturity from their suppliers. Fund administration involves a lot of data management, so it’s important to choose a provider with robust technology solutions. Leading-edge technology is critical in helping administrators to deliver their services to clients. Better processes, impregnable security and clients’ needs should always be at the forefront of their thinking. Apart from regulatory events and financial market conditions, it is essential that cyber risk is proactively managed by an administrator through informed decision making at each level of their organization.
Communication is key in any business relationship, and fund administration is no exception. Look for a provider that has clear and transparent communication channels, and is responsive to your needs and questions.
Additionally, once you have decided to change your fund administrator, it is crucial to communicate the decision clearly and transparently with all your stakeholders. This includes your investors, regulators, and internal teams. You should also provide them with a detailed plan for the transition, including timelines, milestones, and contingencies.
Changing fund administrator requires careful planning and coordination. Dealing with a dedicated transition team is the first step in building the working relationship between a manager and a new administrator. A smooth process built on the back of a detailed plan can allow a fund to upgrade its administration services with no interruption in the reporting requirements and minimal disruption to investors.
Switching to Waystone is a smooth, seamless and hassle-free process. Our dedicated teams ensure the transition of service is both efficient and effective. This is why we have successfully transferred over 150 funds to our platform over the past five years.
Once the transition is complete, it is important to monitor and evaluate the new fund administrator’s performance regularly. This includes reviewing reports, conducting audits, and assessing the provider’s compliance with regulatory requirements. You should also maintain regular communication with the provider to ensure that any issues are addressed promptly.
Changing fund administrator can be a daunting task, but with careful planning and execution, it can result in significant benefits for your fund. By considering these key factors, you can ensure a successful transition and provide your investors with the best possible services.
Waystone is the leading provider of institutional governance, risk and compliance services to the asset management industry.
Partnering institutional investors, investment funds and asset managers Waystone builds, supports and protects investment structures and strategies worldwide. With over 20 years’ experience and a comprehensive range of specialist services to its name, Waystone is now supporting asset managers with more than US$2Tn in AUM.
At Waystone, we see ourselves as your architects in the world of asset management and our primary aim is simple: to design, build and support the investment structures and strategies you need so you can pursue your investment goals with complete confidence.