Chapter 5 - Introduction To Offshore Fund Administration

Question 1

Current role of the fund administrator

Answer 1

In the past the role of an administrator mainly consisted of:
Calculating the NAV
Compiling asset valuations 
Bookkeeping 
Tracking of fund inflows and outflows 

Current role of the fund administrator is not passive - administrators need to ensure they are up to date with the evolving regulatory landscape to ensure that they are able to properly fulfil their role

Fund administrators need to meet regulatory expectations in order to maintain license

Question 2

Evolution of offshore

Answer 2

Offshore jurisdictions have developed specialised infrastructure, including specialised teams of lawyers, accountants etc which are familiar with various fund structures - all of this has contributed to the growth of offshore jurisdictions

The other favourable factors include:
Favourable taxation
Flexible and responsive regulation (up to date with international requirements and expectations)
Language and local knowledge - local industry experts