Assessment Requirements

Since the CEFEX assessment is evidence-based, the Analyst will request documents and other forms of written substantiation to demonstrate that a Practice is being adhered to. The following list can help you identify some areas of focus as you prepare for assessment. 

1. Succession planning (Practice 1.1) – depth of key managerial staff, plan for unexpected disruption, recruiting process for senior management
2. Human Resources (Practice 1.2) – mission statement, clear organizational chart, job descriptions and reporting lines, established review process, formal process for client notification of organizational changes
3. Capacity to service clients (Practice 1.3) – physical location is adequate and set up effectively, client communications are timely, review of business/client concentrations, demonstration of ability to meet tasks outlined in service agreements, process for investment/product provider selection
4. Technology (Practice 1.4) – plan that is updated on regular basis regarding systems both hardware and software, tested disaster recovery plan, qualified staffing to support IT, software and other measures to protect the integrity of client data
5. Employees (Practice 1.5) – employees understand mission and feel that there is a positive culture at firm,  open communication lines and records of issues, normal turnover rates, training programs, staff encouraged to seek advanced education and/or designations, documented compensation structure with clear understanding of industry averages
6. Oversight (Practice 1.6) – responsibility for procedural manuals is clearly assigned, minutes of meeting are recorded and archived, tasks and processes are clearly documented, quality control process is in place for checking work, assignment of responsibility for understanding, communicating and updating processes to meet regulatory changes
7. Risk management (Practice 1.7) – business risk mitigation reviews, which include client types and concentrations, legislative, environmental, referral sources, etc., adequate Errors & Omissions insurance coverage, conflicts of interest identification, review and documentation, client service agreement which outlines clearly responsibilities of all interested parties and meets needs of  a plan fiduciary
8. Financial soundness (Practice 2.1) – corporate stability, capitalization, ownership of firm
9. Organizational planning (Practice 2.2) – written comprehensive business plan, formal process to evaluate services offered, enhancements and new products
10. Internal and external service providers (Practice 2.3) – evaluation process in place to select and monitor service providers with whom you “partner” to provide services to your clients
11. Fee tracking and disclosure (Practice 2.4) – ability to track costs and fees by client, disclosure of fees to client, fees paid to you and others from the plan assets by client
12. Reporting, marketing and sales (Practice 2.5) – appropriate compliance review of materials that are consistent with a documented guideline, process for the selection of third party providers from which client reports and other materials are sent
13. Recordkeeping functions (Practices 3.1 and 3.2) – detailed documentation of all transactional, trading and systems,  IT security measures and oversight, timeliness and accuracy demonstration and oversight of all transactions
14. Access to information (Practice 3.3) – retention policy, client data accessibility and reporting and the meeting of contractual and regulatory obligations with regard to the provision of this data
15. Timeliness of Administration (Practice 3.4) – written administration procedures complying with service agreement, demonstration of tracking and reporting of timeliness of filing requirements, census and annual questionnaires, compliance testing deadlines, oversight of these functions by qualified staff
16. Overall periodic review (Practice 4.1) – evaluation and review of existing policies, procedures, processes, documentation, manuals on an ongoing and regularly scheduled basis completed with objectively

The assessment process allows for the issuance of findings including “Opportunities for Improvement” (OFI’s) and “Non-Conformity Reports” (NCR’s). These confidential findings are provided to the candidate in the assessment thereby allowing the candidate to implement corrective actions, while maintaining certification.