Operational Certification

Providing expertise and visibility to hedge fund managers, transparency and comfort to investors.

  • Amber conducts comprehensive operational due diligence awarding certification to funds that meet an industry benchmark of operational quality.

  • Amber certified funds are industry leaders, have a commitment to operational best practice, and have responded to investor requirements for greater operational transparency.

  • Independent annual “kick the tires” review is conducted by professionals with a combined 80 years of direct experience in hedge fund ODD, operations, operational risk management and fund administration. We have reviewed the operations of over 1000 hedge funds over the course of our collective careers.

  • To be awarded Amber Certification, funds must demonstrate sufficient policies and procedures to reduce the risk of theft and fraud, a material misstatement of the NAV, and other key operational risks. Amber’s certification methodology considers global sound practice standards. Key areas considered by Amber Partners’ operational certification review include (but are not limited to):

    • Staff / physical and IT infrastructure
    • Compliance function
    • Segregation of duties
    • Account opening / asset transfer controls
    • Trade flow processes
    • Reconciliations
    • Existence confirmation
    • Accounting / NAV calculation / investor statements
    • Portfolio valuation
    • Fund administration services
    • Auditors / audited financial statements
  • Amber now offers hedge fund managers, with firm wide assets under management of less than US $1billion, the option to engage Amber to produce just an Operational Certification Summary report. The same underlying certification methodology and process is used for both the operational certification and operational certification summary reports. 

    Please click to download our corporate brochure, FAQ and sample operational certification report. 


Amber Certification Review Process

Amber’s certification review is an annual process. We utilise a consistent and systematic framework in which to gather information and assess operational risk. Amber's professional staff typically perform a one to two day on-site review of the manager, followed by a number of conversations and correspondence.

  • 1. Manager on-site visit
    Meeting with key staff including the CFO/COO, head of compliance, head of IT, etc. to assess the operational infrastructure, policies and procedures.
  • 2. Fund administrator review
    Amber discusses directly with the administrator all services performed for the fund to:
    • Evaluate the robustness of the reconciliation and NAV calculation process.
    • Assess the independence of the portfolio pricing/verification process.
    • Review share registration and KYC/AML procedures.
  • 3. Findings and recommendations
    Presentation of the report to the manager for a factual accuracy check. Meeting with the manager to discuss strengths and weaknesses identified and any recommendations for improvement. Implemented recommendations, once confirmed, will be reflected in the report.
  • 4. Certification report
    Upon certification, an email announcement is sent to Amber’s registered website users.
    Investors may download the report from Amber’s website by obtaining the fund-specific password from the manager.
Ongoing Monitoring
An Amber Certification is valid for 12 months from the date of our on-site visit. The manager must notify Amber of material operational changes during the course of the certification period.

 

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