Controls over the misappropriation of assets 1379
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Hi all
I’m trying to think of a good control that could be designed specifically to mitigate the risk of Miss-appropriation of Assets - ie the risk that Investment assets / cash available to a Fund Managing Company might be fraudulently misappropriated.
Thx
Mocha
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Segregation of Duties
Transaction Authorisation
Bank Rec
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Ah, thanks Denis. I left out segregation of duties in my list. How could I??
Cheers
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One more thing, Bank Rec cannot be done by the person who records assets.
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Might be a little late, but some additional suggestions to enhance controls over misappropriation of assets by an Investment Management Company:
- Reconcile the custodian and investment manager reports periodically.
- Develop and adopt a formal Investment Policy. Many examples can be found on the internet by searching on the terms ‘Investment Policy’.
- Monitor investing activity and review the periodic investment performance reports.
Hope this helps,
Milan
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Never too late, Milan. Thanks all.