Insider perspective on distributor due diligence
2nd February 2024
I initially joined Acolin as a Due Diligence Officer and have been a Due Diligence Team Lead for a year and a half now.
In former roles as a lawyer, I worked and participated in several M&A transaction due diligence projects. But it is only since I joined Acolin that I came to fully understand how due diligence, and the ongoing monitoring of multiple counterparties, is important for a business and its clients and how a flexible and secure platform can serve as a great asset.
Acolin’s Due Diligence team is responsible for overseeing our distributor network. We have implemented a comprehensive framework that ensures the integrity, reliability and compliance of our distribution partners. As the first line of defense is our job to analyze and mitigate risk, safeguarding both our, and our asset manager clients’, brand reputation using a systematic risk approach for risk assessment and analysis. We do this based on applicable laws and regulations, for example, EU directives, aiming to foster transparent and mutually beneficial relationships with our Distribution network.
Acolin’s due diligence process is a comprehensive. We initiate a screening process for distribution partner counterparties, evaluating their ownership structure, financial, operational, AML/CTF procedures and their adherence to industry regulations. This has led to the development of a partnership with a fast-growing network of over 300 distribution partners, built on trust and reliability.
Beside initial screening, we have implemented a ongoing monitoring mechanism which keeps track with changing industry regulation, legislation or relevant changes within a counterparty’s setup. Acolin’s due diligence process involves a thorough examination of the potential risks associated with such changes.
One of our biggest assets in due diligence, besides the specialized due diligence team, is our due diligence platform – the Acolin Oversight Platform (“AOP”). In this platform we store and maintain distribution partner counterparty data in a highly secure environment, in adherence with applicable data protection standards.
Key Features of the AOP are:
- Centralized Data Repository: Our platform acts as a centralized repository for all relevant information regarding our growing distribution partner network. Counterparties we conduct due diligence on have access to their uploaded data and documents in a central and secure environment. It also provides us with the ability to maintain and update
- Automated Data Analysis: The AOP automates the analysis of key metrics, performance indicators and risk factors by leveraging smart data analytics.
- Document Management and version control: our platform provides robust document management features, ensuring version control and document traceability. This not only enhances organization but also facilitates compliance with regulatory requirements. Our Distribution Partners have a user-friendly interface, which allows them to upload and download documents in one place.
- Security Protocols: Given the sensitivity of due diligence data, the AOP prioritizes robust security measures. Advanced encryption, access controls, and secure data storage protocols ensure confidential information remains protected throughout the entire due diligence process.
In order to grow and develop the Due Diligence Team, we foster open communication and collaboration with our Distribution Partners. This includes regular meetings and feedback sessions which help us to understand their challenges and enable us to assist destrin finding mutually beneficial solutions. This gives our Distribution Partners additional support in understanding the due diligence requirements of Acolin and our industry.
The AOP is used by some of the largest asset management companies globally. If you are interested in learning more and how our Due Diligence team can support you, please reach out to us.