Quick transition manager due diligence check
Do you know the financial standing including balance sheet, insurance arrangements and guarantees of your contractual party?
Do you understand the business and financial model of your transition manager, and how the team is incentivised, and therefore their focus?
Can you identify all sources of remuneration, direct and indirect, that support your transition manager’s financial model?
Can you articulate the conflicts that reside within your transition manager’s business model, and how these conflicts both have potential benefits and detriments to your implementation?
If a business continuity plan had to be initiated just prior to your trade being passed to the portfolio trader, then how and when would trade be implemented?