Why Work for a Host ACD?

I speak to a lot of fund administration specialists who are looking to leave the TPA world and cross the fence to a fund management company.  They often want to apply their technical expertise in a different way, to be closer to the products and be part of the bigger picture.  A popular option is to join a host ACD (authorised corporate director) which effectively acts as management company on behalf of multiple sponsors.

From a career perspective there are many advantages to following this route.  It’s a way of securing that sought after oversight role or maybe progressing into product management.  The ACD model is for administration to be outsourced, either to a range of external providers or to a TPA managed in-house within the group.  You’ll take on the functions historically undertaken by a traditional management company, sometimes providing you with exposure to investment management also.  You’ll oversee administration, but won’t get your hands too dirty in terms of daily processing.

You’ll also be surrounded by industry experts eager to disseminate knowledge, so there’s lots of potential to learn.  You’ll learn more about risk management and the implementation of risk strategies.  A solid grounding in the basics of the regulations is a prerequisite, although you’ll have the opportunity to build your knowledge in terms of compliance theory and application.  Potentially long lasting relationships will be built with clients, administrators, platforms and other distributors, providing valuable industry exposure.

The size and structure of host ACD operations will vary widely from listed companies to privately owned operations.  As a potential employee some comfort can be drawn from the regulatory requirement for ACDs to have an appropriate level of capitalisation, i.e. a strong balance sheet.

Host ACDs are worth exploring as a next move for a range of potential candidates from aspiring technicians to iNEDs.