Due Diligence

As a client or potential client, it's often difficult to know what procedures and controls a boutique investment manager has identified and implemented. Most are unlikely to produce an internal controls report or Part B Risk Management statement. Their external audit is usually limited to the financial requirements and reports required under their AFSL.

In addition, many of the traditional back and middle office roles may be outsourced and you're not sure of the level of monitoring and management that occurs. For these reasons, you may want to conduct due diligence on your boutique investment managers to ensure that they are meeting their operational and compliance requirements and are compliant with their AFSL for both your peace of mind and to meet your APRA licensing requirements.

Alternatively, you may be looking to acquire an equity stake in a boutique investment manager and want to know what potential issues you may be inheriting.

Harbridge conducts investment manager due diligence (AFSL, operational and compliance) primarily for super funds, looking to comply with their APRA licensing requirements, as well as potential equity partners in boutique investment managers.

Boutique investment managers can also take advantage of the due diligence services offered to do a health check on their existing operational and compliance arrangements.