Compliance

AML, Compliance and Risk Management

We take a holistic view of compliance and risk management by looking at the entire client relationship and not solely at the investor's AML.  

Manager & Structural Compliance 

Caledonian's compliance program puts all prospective clients through a rigorous due diligence screening. Our preferred clients are SEC or FSA regulated managers with intuitive legal structures and clear valuation policies. In addition, we conduct a detailed risk assessment of the legal structure and investment strategy of the fund. 

Investor AML

Caledonian's AML program has been certified by our external advisors to be compliant with USA PATRIOT Act, Cayman and Isle of Man laws and has been specifically tailored to our hedge fund business. We use Worldcheck to identify political exposed persons, persons on the OFAC List and other international watch lists. 

Operational Risk

Our legal and compliance teams work together at the launch of a new fund to attempt to mitigate operational risks by ensuring that there is a clear segregation of responsibilities between the manager and its service providers. Particular attention is paid to ensuring that the administration has control over cash accounts and payment of manager expenses and that the funds' valuation policies and suspension, redemption and subscription procedures are clearly described in the prospectus. 

Risk Management 

We have robust internal controls to ensure that we are able to meet or exceed the expectations of institutional investors. We have dedicated legal, risk and compliance personnel who are active participants in industry such as AIMA to ensure we keep abreast with industry best practise.

We have a well developed operational environment, fully integrated systems including a leading document management system for enhanced workflow and sophisticated disaster recovery arrangements. The operational environment is supported by a mature risk management structure with includes, training, legal, compliance, internal audit and enterprise risk management.

In addition to our robust internal controls, many of Caledonian's entities are supervised by and report to internationally recognised regulators. CFS Cayman holds a mutual fund administrators licensee pursuant to the mutual funds law of the Cayman Islands and is regulate by the Cayman Islands Monetary Authority and CFS Europe holds a category 4 investment business licensee in the Isle of Man and is regulated by the Isle of Man Financial Supervision Commission.

Caledonian is audited annually on a consolidated basis by a top 5 audit firm and we are presently undergoing a SAS 70 preparedness audit with a leading audit and consulting firm.