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The amount of attention the back office gets nowadays might mean it could easily be mistaken for the portfolio manager’s suite or the trader’s desk. Why? The increase in due diligence on back office operations by investors, especially when it comes to reconciliation processes.
Investors’ knowledge of back-office operations has grown dramatically. They are also demanding increased transparency, accuracy and accountability stemming from the financial crisis. Thorough examination of the quality of back-office controls before making investments decisions has become the new norm.
In response, asset managers ranging from hedge funds to mutual fund managers have taken up the call to automate their back office operations. Foremost among these are the reconciliation and account certification processes. It is these very processes that are often studied by potential clients to gauge the breadth and depth of operational controls in place. Success or failure will still be based on the performance of a firm’s investment strategy, but robust operational control now goes a long way in attracting investment capital to begin with.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Carlo R.W. De Meijer Owner and Economist at MIFSA
11 September
Ruchi Rathor Founder at Payomatix Technologies
10 September
Ahmad Almoosa Cofounder & CEO at Mazeed
Alex Kreger Founder & CEO at UXDA
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