Controls over the misappropriation of assets 1379

  • 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.

  • Segregation of Duties
    Transaction Authorisation
    Bank Rec

  • Ah, thanks Denis. I left out segregation of duties in my list. How could I??

  • One more thing, Bank Rec cannot be done by the person who records assets.

  • 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,

  • Never too late, Milan. Thanks all.

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