MFO Due Diligence Checklist

1. Firm Profile

• Firm name: ______________________________
• Primary contact and title: ______________________________
• Office location: ______________________________
• Review date: ______________________________
• Years in operation: ______________________________
• Ownership structure: ______________________________
• Parent company or affiliated entities: ______________________________
• Number of employees: ______________________________
• Number of client families served: ______________________________
• Primary client profile: ______________________________
• Services offered: ☐ Portfolio management ☐ Financial planning ☐ Selecting other advisers ☐ Pension consulting ☐ Other: ____________________
• Geographic coverage: ______________________________
• Ask for the firm’s current Form ADV or equivalent regulatory filing, if applicable.
• Record the filing date: ______________________________

2. Services and Scope

• List every service included in the proposed engagement: ______________________________
• List every service excluded from the engagement: ______________________________
• Will the firm coordinate outside advisers? ☐ Yes ☐ No
• If yes, describe the coordination process: ______________________________
• Will the firm provide consolidated reporting? ☐ Yes ☐ No
• Reporting frequency: ☐ Monthly ☐ Quarterly ☐ Other: ____________________
• Will the firm support family governance, education, or administration? ☐ Yes ☐ No
• Describe the deliverables we will receive: ______________________________
• Who is responsible for each deliverable? ______________________________
• What happens when a requested service falls outside the agreement? ______________________________

3. Team and Continuity

• Lead relationship manager: ______________________________
• Lead investment professional, if applicable: ______________________________
• Operations contact: ______________________________
• Compliance contact: ______________________________
• Who will attend regular review meetings? ______________________________
• Average tenure of the proposed team: ______________________________
• What happens if the lead contact leaves? ______________________________
• Is there a documented succession plan? ☐ Yes ☐ No
• Is there a backup contact for each key function? ☐ Yes ☐ No
• How often will staffing changes be communicated? ______________________________
• List any outsourced functions: ______________________________
• Who supervises outsourced providers? ______________________________

4. Fees and Expenses

• Fee schedule received on: ______________________________
• Fee type: ☐ Percentage of assets ☐ Fixed fee ☐ Performance based ☐ Hourly ☐ Other: ____________________
• Base fee or rate: ______________________________
• Minimum annual fee: ______________________________
• Fee calculation method: ______________________________
• Billing frequency: ☐ Monthly ☐ Quarterly ☐ Other: ____________________
• Are fees billed in advance or arrears? ______________________________
• Are fees tiered as assets change? ☐ Yes ☐ No
• List each tier and rate: ______________________________
• List setup, transition, reporting, custody, or termination fees: ______________________________
• List third-party costs paid by us: ______________________________
• Can fees change during the engagement? ☐ Yes ☐ No
• Notice period for fee changes: ______________________________
• Are referral, placement, revenue-sharing, or other payments received? ☐ Yes ☐ No
• Describe every potential conflict tied to fees: ______________________________

5. Conflicts and Independence

• Does the firm or an affiliate receive compensation from products, custodians, managers, or advisers? ☐ Yes ☐ No
• Describe the compensation: ______________________________
• Does the firm recommend affiliated services or investments? ☐ Yes ☐ No
• List all affiliates: ______________________________
• How are conflicts disclosed to clients? ______________________________
• How are conflicts reviewed and approved internally? ______________________________
• Does the firm or its personnel trade alongside clients? ☐ Yes ☐ No
• Describe the policy: ______________________________
• Does the firm accept gifts, travel, entertainment, or other benefits? ☐ Yes ☐ No
• Describe the policy and annual reporting process: ______________________________
• Open conflict items: ______________________________

6. Custody, Cash, and Transactions

• Who will hold our assets? ______________________________
• Will the firm have custody or authority to move assets? ☐ Yes ☐ No
• Who approves wires, transfers, and distributions? ______________________________
• Are dual approvals required? ☐ Yes ☐ No
• How are standing instructions verified? ______________________________
• How are cash balances monitored? ______________________________
• How are private assets, collectibles, property, or other non-standard holdings recorded? ______________________________
• How are trade errors identified and resolved? ______________________________
• How are account statements reconciled? ______________________________
• What records will we receive for transactions and cash activity? ______________________________

7. Investment Process, If Included

• Describe the agreed investment objectives: ______________________________
• Describe liquidity needs and known cash demands: ______________________________
• Describe risk preferences and restrictions: ______________________________
• Who makes investment decisions? ______________________________
• How are recommendations documented? ______________________________
• How are outside managers selected and reviewed? ______________________________
• How are concentrated positions handled? ______________________________
• How are private investments, lockups, and valuations reviewed? ______________________________
• How often is the portfolio reviewed against the agreed plan? ______________________________
• What information is used to evaluate results? ______________________________
• Who can approve exceptions to the agreed plan? ______________________________

8. Reporting and Data

• Sample report received on: ______________________________
• Does the report show holdings, performance, fees, cash, and liabilities? ☐ Yes ☐ No
• Can reports be customized by entity, family member, account, or strategy? ☐ Yes ☐ No
• How are data errors corrected? ______________________________
• What is the expected reporting delay? ______________________________
• Can we export our data? ☐ Yes ☐ No
• Available export formats: ______________________________
• Who owns the underlying data? ______________________________
• How long are records retained? ______________________________
• Describe the process for requesting historical records: ______________________________

9. Privacy and Cybersecurity

• Request the firm’s privacy policy and security overview.
• Primary security contact: ______________________________
• Is multi-factor authentication required? ☐ Yes ☐ No
• How is sensitive information encrypted? ______________________________
• How are access rights granted, reviewed, and removed? ______________________________
• How are phishing, payment fraud, and account takeover risks addressed? ______________________________
• How often are security tests or reviews performed? ______________________________
• Has the firm experienced a material security incident relevant to our review? ☐ Yes ☐ No
• If yes, request the date, scope, response, and remediation summary.
• How will we be notified of a future incident? ______________________________

10. Compliance and Controls

• Regulatory registration or filing reviewed: ______________________________
• Review date: ______________________________
• Compliance contact: ______________________________
• Written compliance policies received: ☐ Yes ☐ No
• Code of ethics received: ☐ Yes ☐ No
• Business continuity plan summary received: ☐ Yes ☐ No
• Disaster recovery summary received: ☐ Yes ☐ No
• How are complaints recorded and resolved? ______________________________
• How are personal trading and conflicts monitored? ______________________________
• How are required approvals documented? ______________________________
• Outstanding compliance questions: ______________________________

11. References and Evidence

• Request relevant client references, where permitted.
• Reference contact 1: ______________________________
• Reference contact 2: ______________________________
• Questions asked consistently across references: ______________________________
• Documents received: ☐ Agreement ☐ Fee schedule ☐ Form ADV or equivalent ☐ Privacy policy ☐ Security overview ☐ Business continuity summary ☐ Sample reports ☐ Conflict disclosures
• Document request owner: ______________________________
• Missing documents: ______________________________
• Statements or claims that need evidence: ______________________________
• Evidence received and date: ______________________________

12. Decision Record

• Top reasons to proceed: ______________________________
• Top concerns: ______________________________
• Open questions: ______________________________
• Items requiring clarification in writing: ______________________________
• Items requiring independent review: ______________________________
• Final decision: ☐ Proceed ☐ Proceed with conditions ☐ Continue review ☐ Do not proceed
• Conditions before signing: ______________________________
• Decision makers: ______________________________
• Decision date: ______________________________
• Next review date: ______________________________

Reference Snapshot

• Directory snapshot date: ______________________________
• Directory firm count, if available: ______________________________
• Number of firms with available regulatory filings, if available: ______________________________
• Assets under management data and source, if available: ______________________________
• Reported fee types and source: ______________________________
• Reported services and source: ______________________________
• Use any directory figures as context only. They do not establish quality, suitability, performance, or selection criteria for any firm.