Fourth Installment of Donohue’s Conflicts of Interest Series

The fourth installment of MFDF Chair Buddy Donohue’s conflicts of interest series in Fund Board Views addresses accountant conflicts.  Accountants are critical players in the investment management service provider infrastructure, as they not only audit fund financials but may also provide tax and/or consulting services.  Large accounting firms have a wide range of clients, and potential conflicts of interest are almost inevitable and must be continuously monitored.  Donohue notes that accountants serving the fund industry may be faced with pressures relating to fee structures, cross-selling of services, and/or client retention that could impact their independence or judgment.  Fund directors should remain mindful of the watchdog function that accountants perform and inquire about internal controls, as well as how any existing or potential conflicts are identified and mitigated. 

Click here to read Buddy Donohue’s Fund Board Views article about conflicts of interest relating to accountants.