Due Diligence Questionnaire For the Investec Global …findelgroup.com/uploads/8/3/4/4/83443158/findel_due... · Web viewThe Findel Due Diligence Questionnaire About the Findel Group

The Findel Due Diligence Questionnaire

About the Findel GroupIt is a Group formed of Asset Managers representing over €1.4 trillion of assets under management of the cross border funds industry. The Findel Group is focused on identifying common opportunities to improve operational efficiency in cross border distribution and where relevant recommending and promoting common solutions to the benefit of fund market participants and ultimately end investors. These companies have funds in most major cross-border domiciles including Luxembourg, Ireland, UK, Cayman Islands, Bermuda and the US.

ObjectiveOur key aims are to:

1. Identify common opportunities to enhance operational efficiency in cross border distribution.

2. Recommend and promote through a single voice, common solutions that would be of benefit to fund market participants and ultimately end investors.

3. The Group cooperates with other existing working groups & industry bodies and participates in relevant forums across the industry to further its goals.

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1. Confidential Document

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ContentsCompletion Guidance...............................................................................................................3

1. General information..............................................................................................................4

2.Targeted information for Distributors......................................................................................6

3.Distribution and Marketing.....................................................................................................8

4.Marketing material...............................................................................................................10

5.Legal and Regulatory Oversight..........................................................................................11

6.Oversight of Sub-Distribution...............................................................................................12

7.Risk Management and Controls...........................................................................................13

8.Technology and outsourced services...................................................................................13

9.Compliance..........................................................................................................................14

10.General AML Policies, Practices and Procedures..............................................................15

11.Client due diligence requirements......................................................................................18

12.Sanction and PEP screening.............................................................................................20

13.Transaction Monitoring......................................................................................................21

14.AML Training.....................................................................................................................21

Declarations and execution.....................................................................................................23


Completion Guidance

1. DistributorsComplete the below sections:

a. 1. General informationb. 2.Targeted information for Distributorsc. 3.Distribution and Marketingd. 4.Marketing materiale. 5.Legal and Regulatory Oversightf. 6.Oversight of Sub-Distributiong. 7.Risk Management and Controlsh. 8.Technology and outsourced servicesi. 9.Compliancej. 10.General AML Policies, Practices and Proceduresk. 11.Client due diligence requirementsl. 12.Sanction and PEP screeningm. 13.Transaction Monitoringn. 14.AML Trainingo. Declarations and execution

2. IntroducersComplete the below sections:

a. 1. General informationb. 3.Distribution and Marketingc. 4.Marketing materiald. 5.Legal and Regulatory Oversighte. 7.Risk Management and Controlsf. 8.Technology and outsourced servicesg. 9.Complianceh. 10.General AML Policies, Practices and Proceduresi. 11.Client due diligence requirementsj. 12.Sanction and PEP screeningk. 13.Transaction Monitoringl. 14.AML Trainingm. Declarations and execution

3. Financial Institutions not distributing but holding shares on the register on behalf of a third party – (E.G. Nominee shareholdings)Complete the below sections:

a. 1. General informationb. 5.Legal and Regulatory Oversightc. 9.Complianced. 10.General AML Policies, Practices and Procedurese. 11.Client due diligence requirementsf. 12.Sanction and PEP screeningg. 13.Transaction Monitoringh. 14.AML Trainingi. Declarations and execution



1. General information1. Financial Institution Name/Intermediary Name:

A:

2. Country of Incorporation:

A:

3. Country of Domicile:

A:

4. Website:

A:

5. Name of your regulator and Registration No.

A:


6. Ownership Structure:Please include any company that holds 25% or more of the shares/voting rights of your firm. Please provide the details up until the ultimate natural beneficial owner. If your firm is listed or owned by a listed firm you do not need to disclose the details above the listed firm (please provide a Group Structure Chart).

Ultimate Parent/Shareholder Percentage controlled

Listed Company or Parent:

Exchange Country

7. In addition to inspections by the government supervisors/regulators, do you have an internal audit function or other independent third party that assesses AML policies and practices on a regular basis?

Yes No

a. Please confirm if there have been any significant deficiencies raised in the last two years?

Yes No


8. Management Structure:Please fill in the details of your current management board. You can satisfy this question by submitting a separate document detailing the current Board of your firm.

Board Member Year of birth

2. Targeted information for Distributors

1. Does your firm have experience in Distributing Investment Funds (whether open or closed ended)?

Yes No

a. If yes, how many years of experience does your firm have?A:


2. Has your firm been rated by a dedicated ratings agency (international or local)?

Yes No

b. If yes:

Agency Rating Date of last rating

Date of next review

3. What is the current level of your assets under management?

AUM Range US$

Please select

1-20m

20-50m

50-150m

150-500m

500-1bn

1-20bn

>20bn

4. Please confirm how you will trade with the Fund?

Method of trading

Please select

Direct

NSCC

Platform


Custodian

3. Distribution and Marketing1. Will you be distributing the UCITS Funds in any jurisdiction other than your domiciled

country?:

Yes No

a. If yes:

Country Are you aware of the marketing restrictions?

2. Will you be utilising Sub-Distributors?:

Yes No

3. Do you enter into formal contracts with Sub-Distributors?:

Yes No

a. Does the contract include liability clauses for breaching?:

Yes No

4. Do you have suitability controls to ensure that you only distribute the Funds to eligible and appropriate investors?:


Yes No

5. Do you monitor against miss selling?:

Yes No

6. Do you monitor your salesforce and ensure they comply with the local regulations as well as the contractual obligations?:

Yes No

7. What is the estimated AUM that you foresee being invested in the Funds through your firm?:

AUM Range US$

Please select

1-20m

20-50m

50-150m

150-500m

500-1bn

1-20bn


4. Marketing material1. Do you have the mechanisms to obtain and provide, to underlying investors, the

marketing material and product documents required by the local regulations?:

Yes No

2. Do you create your own marketing material for the funds you distribute?

Yes No

3. Do you require any specific documentation to be provided by us for your marketing requirements?

Yes No

a. Please provide the detail:A:


5. Legal and Regulatory Oversight1. Has your organisation been prosecuted, fined or otherwise, for failure to comply with

any stipulated regulations or legislation? If yes, please provide the full details and action taken to address the deficiencies.

Yes No

A:

2. Have you developed written policies documenting the processes that you have in place to prevent, detect and report suspicious transactions?:

Yes No

a. Please provide a description of your process for monitoring account activity to detect suspicious transactions and your process for reporting such activity

A:


6. Oversight of Sub-Distribution (Only required when utilising third party sub-distribution)

1. Do you make use of sub-distributors that are not subsidiaries or part of your group of companies?

Yes No

If yes, please complete the remainder of the section.

2. Do you perform a full due diligence review on the sub-distributor before appointing them?

Yes No

3. Do you perform ongoing monitoring on the sub-distributor to ensure that they are acting in accordance with the relevant agreements and the local laws and regulations?

Yes No

4. Do you risk assess your appointed sub-distributors?

Yes No

5. Do your sub-distribution contracts include:a. Access to end investors KYC files through the distributorb. Adherence of the network to AML/CTF requirementsc. Adherence to local marketing regulationsd. Accountability of sub-distributors to liability

Yes No


7. Risk Management and Controls1. Do you have an Operational Risk Function?

Yes No

2. Do you have professional liability insurance in place?

Yes No

8. Technology and outsourced services1. Are your Systems and IT infrastructure adequate to safeguard the security, integrity

and confidentiality required?

Yes No

2. Do you have a business continuity policy?

Yes No

3. Do you have a disaster recovery plan?

Yes No

4. Does both your business continuity policy and disaster recovery plan meet the local regulatory requirements?

Yes No


5. Do you outsource any of your primary functions, including risk?

Yes No

a. If yes, please provide the details:A:

b. Please confirm the type and frequency of monitoring you conduct on these outsourced services:

A:

c. Are SOC and ISAE reports available?:

Yes No

9. Compliance1. Do you have an AML compliance program?

Yes No

2. Is this program approved by your Board of Directors or a Senior Committee?

Yes No


3. Do you have a legal and regulatory compliance program that includes a designated officer who is responsible for coordinating and overseeing the AML framework?

Yes No

4. Do you have policies or procedures for the identification and reporting of transactions that are required to be reported to the authorities?

Yes No

5. Where cash transaction reporting is mandatory, do you have procedures to identify transactions structured to avoid such transactions?

Yes No

10. General AML Policies, Practices and Procedures1. Do you have a policy prohibiting accounts/relationships with shell banks? (A shell

bank is defined as a bank incorporated in a jurisdiction in which it has no physical presence and which is unaffiliated with a regulated financial group):

Yes No

2. Do you have procedures to reasonably ensure that you will not conduct transactions with or on behalf of shell banks through any of its accounts or products?

Yes No


3. Do you have any anonymous or numbered/lettered accounts?

Yes No

4. Do you have policies covering relationships with Politically Exposed Persons (‘PEPs’), their family and close associates?

Yes No

5. Do you maintain accounts for Politicians, Senior Government Officials or members of their families?

Yes No

6. If yes, do you have enhanced due diligence procedures for opening accounts and monitoring these accounts?

Yes No

7. Do you require Senior Management approval to open such accounts?

Yes No


8. Please provide a description of your process for or opening and monitoring such accounts:

A:

9. Do you have record retention procedures that comply with applicable law?

Yes No


11. Client due diligence requirements1. Have you implemented processes for the identification of those customers on whose

behalf you maintain, operate accounts or conducts transactions?

Yes No

2. Does your process for the identification of customers include the identification of Beneficial Owners/Controllers and Ultimate Economic Owners of corporate customers, trusts/foundations and other non-personal customers?

Yes No

a. If yes, does that include the verification and identification of all beneficial owners where multiple layers of beneficial owners exists?

Yes No

3. Do you have a risk-based assessment of your customer base and their transactions?

Yes No

4. Do you determine the appropriate level of enhanced due diligence necessary for those categories of customers and transactions that you have reason to believe pose a heightened risk of illicit activities to your organisation?

Yes No


5. Do you have a requirement to collect information regarding your customers’ business activities to enable you to understand the purpose and intended nature of the business relationship?

Yes No

6. Do you complete a risk-based assessment to understand the normal expected transactions of your customers?

Yes No

7. Do you have procedures to establish a record for each new customer noting their respective identification documents and KYC information?

Yes No

8. Do you have a process to review and, where appropriate, update customer information relating to high risk client information?

Yes No

9. Where appropriate do you assess your customers’ AML policies and practices?

Yes No


12. Sanction and PEP screening1. Do you screen customers and transactions against watch lists of persons, entities or

countries issued by governments and other competent authorities?

Yes No

a. If yes, which local or global watch lists do you screen against? A:

2. With regards to customer screening against watch lists of persons, entities or countries, please provide additional information in relation to your procedures for this, including when, how and the frequency of ongoing monitoring and systems used.

A:

3. Do you screen customers against OFAC’s Specially Designated National (SDN) and Blocked persons List?

Yes No

4. Do you have policies to reasonably ensure that your company only operates with correspondent banks that possess licences to operate in their country of origin?

Yes No


13. Transaction Monitoring1. Do you have a monitoring program for unusual and potentially suspicious activity that

is deemed to be outside of their customers risk profile?

Yes No

14. AML Training1. Do you provide AML training to relevant employees that includes:?

• Identification and reporting of transactions that must be reported to government authorities

• Examples of different forms of possible money laundering activity involving your products and services

• Internal policies to prevent money laundering.

Yes No

a. Please confirm the frequency of such training:

A:

2. Do you retain records of the training sessions including attendance records and relevant training materials used?

Yes No


3. Do you communicate new AML related laws or changes to existing AML related policies or practices to relevant employees?

Yes No

4. Do you employ third parties to carry out any part of your AML functions?

a. If yes, please specify:

A:


Yes No

Declarations and execution

Name:

Title:

Signature:

Date:Email Address:Telephone Number:


Documents

Due Diligence Questionnaire For the Investec Global …findelgroup.com/uploads/8/3/4/4/83443158/findel_due... · Web viewThe Findel Due Diligence Questionnaire About the Findel Group