Hedge Answers

In response to your question, there really is no globally-recognized certification for hedge fund administrators.  Most administrators do hire independent auditors, though, to obtain a SAS70 or SSAE16 report.  These reports verify that a recognized auditor has performed an in-depth audit, in accordance with standards established by the American Institute of Certified Public Accountants (AICPA), of the administrator’s policies, procedures, and controls.  A SAS70 or SSAE16, once obtained, will typically be made available to potential clients, clients’ service providers, and investors.  It can offer comfort to these parties that the procedures, controls, and systems said to be in place by the administrator are actually working and being carried out in the manner in which they were intended.  Common areas tested and reported upon in SAS70s and SSAE16s include:  fund setup,  transaction processing, cash movement processing, cash and security reconciliation, pricing, net asset value finalization, investor setup and transactions, information systems operation, and information security.

Amy Francisco
Assistant Vice President, Business Development
MERIDIAN FUND SERVICES (USA) LLC