This CEFEX certification is an independent recognition of a firm's adherence to
the prudent practices required to provide support to fiduciaries. It implies
that a firm can demonstrate adherence to the industry's best practices, and is
positioned to earn the trust of client fiduciaries. The scope of registration is
a discrete list of the support services provided, including identification of
where fiduciary responsibility is assumed, if applicable.
Prudent Practices for Investment Support Services
The Prudent Practices for Investment Support Services align directly with the
fiduciary responsibilities detailed in the Handbooks Prudent Practices for
Investment Advisors and Prudent Practices for Investment Stewards.
Please click here to view the Prudent Practices for Investment Support Services.
Depending on the candidate, the services which may be assessed in this
certification program are:
- Request For Proposal (RFP) processes to select other Investment Service Providers
- Due diligence on other Investment Service Providers
- Preparation of Investment Policy Statements
- Asset allocation studies
- Due diligence on Investment Managers
- Implementation of liability protections that operate in the form of “Safe
Harbors”, such as: selection of “Investment Managers”, 404(c), QDIA, Fiduciary Adviser, 408(b)(2)
- Analysis of fees, compensation, affiliations and conflicts of interest of
other Investment Service Providers
- Monitoring of other Investment Service Providers regarding fulfillment of
contract terms or opportunities for improvement
- Preparation of investment performance reports
- Investment performance analysis
- Provision of advice regarding investment strategies and tactics
- Conducting fiduciary reviews or assessments
At the outset, the candidate identifies which of the above services are to be
assessed, and whether or not fiduciary responsibility is assumed.
Prudent Practices for Investment Manager Administration
This document describes a set of Practices for firms that provide administration
services to Investment Managers, or Investment Manager Administrators (IMA’s).
IMA’s deliver important back-office functions to Investment Management firms who
assume fiduciary responsibilities. The adherence to these Practices by the IMA
forms an integral element of the trust placed in the Investment Managers by
their clients, whether individuals or large organisations.
Please click here to view the Prudent Practices for Investment Manager Administration.