Benchmarking Control of Delegated Functions

Abstract

Fund management companies delegate a wide range of tasks, however they remain the responsible entity for the delegated functions. The focus of this research lies in the functions portfolio management, distribution, custody bank and fund administration. It is assumed that fund management companies use different oversight and due diligence concpets. The aim of this paper is to analyse the existing ones and to discover if there is a best-in-class approach to monitor the delegated functions. Parameters to be compared: Control processes, resource requirements, optimization possibilities, etc.