Fund services provider Ipes, has achieved AAF 01/06 accreditation in recognition of the quality of its control environment following a six month review by Ernst & Young.
The process involved a comprehensive review of Ipes’ internal controls with a particular focus on their operating effectiveness. Following the review, Ipes achieved two standards – ISAE 3402 and AAF 01/06.
Barry McClay, Chief Operating Officer, who led the process says “Effective and demonstrable internal controls are of growing interest to private equity clients and their investors who are now more aware of operational risk than ever before.
In selecting an administrator, clients want comfort that the organisation they contract with has proven processes supported by resilient and secure infrastructure in place and we have made a significant investment in these areas. It was therefore an important next for us step to seek independent validation in this way.”
Steve Spybey, Director, Advisory services for Ernst & Young says “In the current economic environment, many organisations are finding themselves under a level of examination that they have never experienced before.
An AAF 01/06 or equivalent assessment provides service providers with an independent review of the control environment that will, in many cases, act as a catalyst for a drive for improved risk management and an increased focus on internal controls.”
The AAF 01/06 accreditation is issued by the Institute of Chartered Accountants for England and Wales (ICAEW). It is similar to the internationally recognised SAS 70 accreditation, which was widely regarded as the ‘gold’ standard in third party assurance, and which has been replaced by SSAE 16.
In achieving the accreditation, Ipes joins a select group of independent service providers who have met the standards outlined by the ICAEW.
“In an increasingly regulated market, a well regarded third party assurance such as AAF 01/06 will be of importance to the continued success of our business and it is something that we are now asked about more frequently by existing and prospective clients” says McClay.
The accreditation covers Ipes’ operations in the UK and the Channel Islands. Going forward the firm will seek to extend it to cover its Luxembourg operation.
Ipes was established in Guernsey in 1998 and now has offices in London, Luxembourg and Jersey. It employs more than 130 people and services over 90 clients in the private equity space.