What are Fund Administration Services?

Fund administration services are financial and administrative assistant services for different financial vehicle funds offered by fund operators. The funds that would require administration services are funds like hedge funds, mutual funds, 401K funds, IRA funds and other funds that are similar.

Financial Services

Fund administration services take care of the financial administration of the fund. This includes handling the administration for all of the financial statements each month, quarter and year. The number of statements is dependent on what is needed or what type of fund it is. Financial services also include preparing expense budgets annually as well as periodic analysis of the fund's accrual. Financial services can also include filing necessary tax forms or arranging independent audits of the fund.

Compliance

There are many laws and regulations in place for financial funds, and compliance administrative services make sure these regulations are followed so the fund is in compliance with the law. Compliance report is typically required of all funds, and the compliance administrative services take the necessary steps to file compliance reports with the Securities and Exchange Commission. Most investment professionals who are working for the fund require compliance training, and this is typically arranged by the fund administration services.

Taxes

There are many tax forms and reports that are required of each fund. Fund administration services will often provide tax-reporting services, which include all the necessary documentation required for tax reporting. This reporting includes distribution reports as well as annual shareholder reports. Tax returns can also be prepared by the fund administration service each year.