Who subscribes to NQR’s INSIGHT Services?
We provide transfer agent, intermediary, and vendor oversight solutions to the nation’s leading financial institutions, including 7 of the Top 10 mutual fund families and a majority of the Top 50. For a client list or references, please contact NQR.
Which service provider types does NQR review?
Since 2013, our experts have helped fund families review audit reports from the nationwide population of distribution intermediaries. We’ve now expanded our review to include transfer agents, custodians, fund accountants, price evaluators, and all other mutual fund service providers. For questions about specific provider types, please contact NQR.
Why are audit reports considered the foundation of vendor oversight?
Unlike questionnaires and self-certifications, the independent nature of an audit report delivers a trustworthy foundation for understanding and relying on outsourced operations. This view is confirmed by the adopting release issued by the SEC when it published the Compliance Rule: “[W]e will consider a fund’s policies and procedures to have satisfied the [3rd-party oversight requirements of Rule 38a-1] if the fund uses a third-party report on the service provider’s procedures…”.
How does NQR review all audit reports through a consistent lens?
NQR maps the entirety of each document to dual control frameworks: (1) Generally Applicable control areas that are universally relevant to all services (e.g. business continuity processes) and (2) Service-Specific control areas that are unique to particular services (e.g. collateralization processes for securities lending providers). Based on client feedback and the evolution of industry services, frameworks will expand to encompass any new audit report content.
Who from NQR reviews the audit reports?
Our team averages 20+ years of industry experience in audit, operations, and compliance/legal. Over the past 7 years the team has assessed reports from 100+ mutual fund service providers – that’s 160+ audited documents each year.
How detailed is INSIGHT reporting?
INSIGHT reports meet the spectrum of needs from day-to-day operations to Board reporting. This includes the full control analysis by vendor and service, page citations, exception details with management responses, control objectives, user entity controls (CUECS), and subservice organization controls (CSOCs). All data is exportable to Excel, PowerPoint, Word, and PDF.