Alternative Data Providers Compliance Services

Many companies, including asset managers and investors, are continuously searching to identify new ways to enhance performance, find a competitive advantage and minimize portfolio risk. To facilitate these efforts, many companies are looking outside of their traditional financial and economic information sources to alternative data providers to identify other methods of gathering data.

As companies more heavily rely on alternative data, ensuring that data providers have sufficient oversight and controls, including a robust compliance infrastructure, has become paramount.

Confidentiality and privacy concerns are also top of mind for many companies as information security regulations become increasingly complex.

Based on our extensive experience in the regulatory compliance industry, particularly through conducting due diligence on both companies and service providers, we have developed a methodical approach to assist data providers and companies with understanding the unique risks presented by using alternative data sources. Our program focuses on establishing a compliance infrastructure while minimizing reputational risks and implementing industry best practices.

Duff & Phelps can support both data providers and companies looking to conduct due diligence on data providers.  These services include:

For Data Providers

  • Completing an initial risk assessment
  • Preparing customized compliance policies and procedures
  • Creating a standard due diligence questionnaire
  • Conducting compliance training for employees
  • Completing an annual review of compliance policies and procedures

For Companies

  • Conducting due diligence on prospective or current data providers, including:
    • Compiling and sending a document request list
    • Conducting a gap analysis of the alternative data provider’s compliance program
    • Facilitating discussions with the data provider
    • Preparing a formal report of the review
  • Preparing background assessments on relevant personnel at the data provider

As technology and data sourcing becomes increasingly multifaceted, addressing and mitigating operational risk has become a top priority. At Duff & Phelps, we can help you meet your firm’s specific needs to prevent reputational harm and create a sound culture of compliance.

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