Service Providers and Asset Managers Focus on Due Diligence

As more asset managers shift their operations to service providers, there has been an increased focus on due diligence. This has led to extended vendor selection processes that weigh a variety of factors such as culture, processes and capabilities. Citisoft's Tom Secaur notes that greater due diligence is being driven by service providers as well. He notes that many of the large custody banks and third-party vendors will work with managers to provide a proof of concept. Says Secaur: "You get that comfort level, not just with the [outsourcing] firm but the systems, the data, a day in the life of the people who would be servicing your account. It gives you a level of confidence, but it also lessens the risk that you are making a mistake." Read the full article on Ingites.