Financial Foresight - Managing Risk Among Financial Intermediaries
Shareholder servicing in the mutual fund industry has evolved from a relatively simple model involving a single vendor to a much more complex “omnibus” model reflecting the industry’s substantial expansion, increased reliance on technology, and increased reliance on multiple service providers.
“With the growth of omnibus accounting, it really has become difficult for the fund companies to manage the risks associated with extended distribution and servicing models,” says Krissy Davis, a partner with Deloitte & Touche LLP’s Audit and Enterprise Risk Services practice. “To help address these issues, fund companies need to create risk management programs that align internal controls with oversight functions.”
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