Principal Financial Officer

Principal Financial Officer Outsourcing

A Fund Principal Financial Officer (“PFO”) (alternatively known as a Treasurer), with a key responsibility for the financial operations of an investment company, plays a crucial role in any organization. PFOs present financial data for an organization, handle current finances, and offer forecasts and support for future financial decisions. In short, the PFO is responsible for the financial health of your mutual fund. In today’s regulatory environment, the PFO is also critical for ensuring compliance with various federal regulatory standards.

Many funds today consider the option of outsourcing its PFO as an alternative to hiring or utilizing their full-time PFO, or as a solution during a transition period, following turnover at PFO role. For both streamlining and budgetary concerns, PFO outsourcing might make sense for you.

What Does Fund Outsourced PFO Do?

PFOs handle many tasks at an investment organization, including, but not limited to:

  1. Attend and Present at all Board and Committee meetings, as requested or required.
  2. Review Draft Financial Statements prepared by Service Provider.
  3. Review Monthly Financial Statements.
  4. Review Final Dividend Distribution Schedule.
  5. Review Calculation of Advisory Fee Process.
  6. Review Service Provider’s Sub-Chapter M Reports.
  7. Review Fund’s Fair Valuation Schedule and assist in Fair Valuation Pricing Procedures.
  8. Review Asset Coverage Test Information from Service Provider.
  9. Review of Sarbanes Oxley Reports for Fund SEC Filings.
  10. Interface with the Fund’s Registered Auditors.
  11. Review and Execution (as applicable) of N-CSR, N-CEN, 10-Q, 10-K, N-PORT and other applicable SEC Filings
  12. Review the Fund’s Audit Reports, Management Letters and Internal Control Letters.
  13. Review Certifications and Sub-Certifications of Service Providers.

Outsourced Principal Financial Officer Solutions

Depending on your business and industry, you may need outsourced Principal Financial Officer (PFO) solutions for only specific projects or tasks. Since PFOs have many different skills that benefit an organization’s finances, you can work with them on your most important projects, or for every one of your financial projects. That’s the benefit of outsourced PFO solutions.

Working with a PFO’s experience and insight will ultimately help you keep an accurate pulse of your company’s finances. Also, having a fresh set of eyes analyze your numbers can help you gain accurate insights and timely information during a growth or crisis time.

Below are five solutions that our experienced PFO consultants will typically handle.

  • Know how to analyze how work and finances flow at your organization
  • Create easy processes for staff to follow to increase efficiency and save money
  • Analyze how you can model your finances to reduce risks
  • Design models and plans that go well with future planning or financial projections
  • Provide insight on hiring financial professionals or third party providers
  • Discover bankers or investors that fit your company and build relationships
  • Handle debt and equity
  • Include asset and succession planning for how your business will continue to be financially stable and secure through future leaders of the company
  • Strategically provide planning as an outsourced account solution to ensure your business will be stable
  • Review tax structure, financial statements, contract reviews and insurance with risk analysis
  • Determine the most significant risks and the insurance needed to cover them
  • Provide expert review skills that are impactful for  long and short-term goals
  • Provide help in creating internal and external reports or proposals representing your business
  • Report structure allows your internal team to identify and analyze key metrics and how your company is represented
  • Provide expert guidance to your internal team on what they think of your internal operations, reports, future plans and modeling
  • Provide financial expertise on medical leave, change of leaders and your overall business goals in relation to their fiscal impact

Why Outsource PFO Professional Solutions?

Outsourcing contract PFO solutions offers many advantages when compared with hiring a full-time and in-house PFO. With outsourced PFO consulting solutions, you can:

  • Save considerably, by only hiring a part-time PFO as needed
  • Have a solution in the event of turnover at the PFO position
  • Stay flexible, securing PFO assistance during mergers, acquisitions and other major developments
  • Avoid having team members take on a PFO’s role
  • Secure the services of a professional and experienced PFO
  • Save the time you would need to invest in recruiting a full-time PFO
  • Work with PFOs who have experience working across multiple firms and fund complexes

Request a Proposal

Working With Vigilant

Vigilant has a team of legal and financial professionals as well as experienced PFOs already carefully selected, so if you need PFO solutions quickly, Vigilant can offer you the support you need quickly. We are proud to provide solutions to clients all over the country including Metro New York, Philadelphia, Boston, D.C. and Dallas. Since 2004, Vigilant has worked with billion-dollar funds, investment firms and organization in the investment management industry. As a leader in the sector and a full-service investment management solutions firm, Vigilant also has the additional solutions you need.