Litigation avoidance

Global Fund Administration Management Report 2010


As the complexity of funds and the difficulty of validating some valuations become more difficult, administrators may be running the risk of litigation by irate or disgruntled investors. Most administrators believe it is best to avoid a court appearance as it could damage a company’s reputation.

If an administrator is grossly negligent in its duties resulting in the fund becoming insolvent, then the administrator will bear the financial liability and will need to compensate the fund and the inves