A guide on best practices for hedge funds when they turn to outsourcing was recently published by the Alternative Investment Management Association, Aima, reports Global Custodian.
A questionnaire too
And not only a guide, in fact. A special due diligence questionnaire, ”DDQ”, to put before the candidate outsourcing service providers has also been released by the organization.
”Failures in operational and compliance controls to supervise can lead to enforcement actions. This, combined with the substantial increase in focus on outsourcing by European entities, makes outsourcing sound practices important for managers,” Aima stated.
Banks to get their equivalent
For banks and investment firms, the European Banking Authority (EBA) meanwhile plans to publish new guidelines to supersede the 2006 CEBS Guidelines on outsourcing. These are expected to form the basis for European regulators in how they approach outsourcing, Global Custodian writes.