The operational and cost challenges caused by the financial crisis, recent hedge fund scandals and changing perceptions of Prime Brokers has increased the importance of the Fund Administrator with regard to operational risk and regulation.
With heightened regulatory focus and with increased investor and institutional scrutiny of fund administration practices, hedge funds must address investors' growing concern over operational and regulatory risk. Quintillions unique operation model helps hedge fund managers provide full transparency and meet many of the concerns of existing and prospective shareholders.
- Independent valuation and validation – Quintillion will facilitate the establishment of an independent asset valuation framework. This includes assistance in both the formation of an independent valuation committee alongside the creation of a detailed pricing policy which increases transparency and sets out various rules and processes to follow in the valuation of various asset classes. We will then consistently apply this policy and framework to ensure an independent valuation approach.
- Reconciliation – Automated daily three way reconciliations to Prime Brokers/Counterparties and Investment Manager using Q Match. This ensures timely identification and resolution of any discrepancies.
- Investor due diligence – Increasingly, the ‘On-Site visit’ by investors of the back office operations is a critical component of the due diligence process. Quintillion actively encourages and facilitates such visits and some of the largest pension funds and fund of hedge funds have successfully undertaken this process for both current and potential clients
Reporting – Changes in the industry at every level have meant that transparent reporting is essential. Quintillion’s reporting suite and capabilities ensure that information can be extracted and communicated to all users ie Investment Manager, Investors, Regulators, Auditors and Tax Advsisors.
- Profit and loss by security
- Exposure calculations and reporting
- FAS 157 reporting