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Switching Fund Administrators: What to look for?

By May 9, 2024No Comments

Switching fund administrators is a particularly important decision for any fund set up. Fund administrators play a vital role in managing the administrative aspects of investment funds, including investor relations. Fund administrators are also becoming more central to AML and Compliance related matters often taking on the MLRO and Compliance Officer role within client funds.

When considering a switch in fund administrators, it is essential to conduct thorough research and evaluation to identify a provider that aligns with your fund’s needs and objectives. Here are some key factors to consider during the selection process:

1. Expertise and Experience:

Look for fund administrators with a proven track record and extensive experience in your specific industry or fund type.

Consider factors such as the size and complexity of the funds they have administered, their knowledge of relevant regulations and compliance requirements, and their understanding of your strategy.

2. Substance in the Jurisdiction:

Understand the set up in the jurisdiction where the service is contracted. It will be much easier if you will be serviced by team members within the office you contracted with and not a back office which would probably be operating in another time zone. This also helps with communication and building a relationship with the team member/s working on your fund and who will also be liaising with your investors.

3. Reputation and Reliability:

Research the reputation and reliability of potential administrators by reaching out to current clients they service and other industry players.

Look for administrators with a history of delivering accurate and timely services, as well as a commitment to client satisfaction and long-term partnerships.

4. Technology Infrastructure:

Assess the technology infrastructure and capabilities of potential administrators, including their software platforms, data security measures, and reporting tools.

5. Service Offerings:

Evaluate the range of services offered by potential administrators to ensure they meet your fund’s needs and preferences.

Consider also other supporting services you might need such as compliance and AML roles which might not be offered by all administrators. Make sure they are open to what you need be it taking on the official role or just support be it temporary or permanently.

6. Pricing and Fee Structure:

Understand the pricing and fee structure of potential administrators, including setup fees, ongoing fees and whether (especially if you are a newly launched fund) they are open to support you with a different fee structure as you grow.

Compare pricing across multiple administrators to ensure you are getting a competitive rate, but also consider the value provided in terms of service quality, expertise, and technology capabilities.

7. Client Support and Communication:

Consider the level of client support and communication offered by potential administrators, including responsiveness, accessibility, and the availability of dedicated client service teams.

Look for administrators that prioritise proactive communication, transparency, and collaboration to ensure a positive client experience and address any issues or concerns promptly.

8. Scalability and Flexibility:

Evaluate the scalability and flexibility of potential administrators to accommodate your fund’s growth, changing needs, and future expansion plans.

If they are not part of an international network, it is more likely that they can take decisions quickly as to which clients to onboard and assist any tailored services you might require for your fund.

9. Transition Support and Onboarding Process:

Inquire about the level of support and assistance offered during the transition process and initial onboarding including level of parallel running to be performed prior to formal take over.

In conclusion, switching fund administrators is a significant decision that requires careful consideration and due diligence. By evaluating key factors such as expertise, jurisdiction, reputation, technology infrastructure, service offerings, pricing, client support, scalability, and transition support, it will become easier to identify a trusted and reliable partner that meets the specific needs and objectives.

Fexserv Fund Services has assisted many fund managers and promoters in similar transitions. To learn more about how Fexserv can be the right partner for your needs, please contact us on