How big is the fund administration market?
Depending on the source, fund administration is anywhere from a $8 billion to a $12 billion industry today.
What does a fund administrator do?
Essentially, a fund administrator is an outsourced third party service provider that protects the interests of investors by independently verifying the assets and valuation of the fund. By outsourcing the fund administration function, fund managers are allowed the freedom to focus on portfolio management internally.
What makes a good fund administrator?
Technology is a critical component of a successful administrator. The key is straight through, efficient, secure processing. Information should flow in to the administrator, be processed, and flow out to the investment manager and their investors.
What is the role of fund administrator?
Who regulates fund administrators?
The SEC regulates investment advisors over $110 million in assets under management. FINRA enforces SEC rules and regulations among members and is responsible for overseeing brokerage firms and individual brokers. Other agencies that regulate asset managers include the Federal Reserve, the U.S. Treasury, and the FDIC.
Are Fund Administrators regulated?
Is fund administration regulated in your jurisdiction? Fund administration activities such as accounting, financial reporting and performance-related services are generally not subject to regulation in the United States. Often, funds outsource these activities to third-party administrators.
Are private funds regulated by CIMA?
The Private Funds Act, 2020 (the Act), which took effect 7 February 2020, requires certain Cayman Islands-domiciled, closed-ended investment funds to be regulated by the Cayman Islands Monetary Authority (CIMA).
Does a Cayman fund need an administrator?
A Fund must be qualified under the Law before commencing operations. To do so the Fund may either obtain its own licence, appoint a licensed Fund Administrator to provide its principal office, or be registered if it requires a minimum investment of USD 100,000 or if its equity interests are listed on a stock exchange.
What funds need to register with CIMA?
Limited Investor Funds – Open-ended funds with 15 or fewer investors who have the ability to appoint or remove the operator of the fund referred to as “limited investor funds” are required to register with CIMA in accordance with the MFA.
What is hedge fund interest?
Carried interest is a share of a private equity or hedge fund’s profits that is paid to the fund’s managers. People often view this money as a performance bonus because the more the fund makes, the more profit there is for the managers to share.