User:Cefexeditor
| File:CEFEX logo.PNG CEFEX logo | |
| Formation | 2006 |
|---|---|
| Headquarters | Toronto, ON |
| Location | |
Official language | English |
| Website | http://www.cefex.org |
CEFEX is an independent global assessment and certification organization. It works closely with investment fiduciaries and industry experts to provide comprehensive assessment programs to improve risk management for institutional and retail investors. CEFEX certification helps determine trustworthiness of investment fiduciaries.
As a certifying organization, CEFEX provides an independent recognition of a firm’s conformity to a defined Standard of Practice. It implies that a firm can demonstrate adherence to the industry's best practices, and is positioned to earn the public's trust. This registration serves investors who require assurance that their investments are being managed according to commonly accepted best practices.
Fiduciary certification programs are based on Prudent Practice handbooks published by Fiduciary 360, of Bridgeville, PA. Fiduciary 360 offers an all-encompassing approach to investment fiduciary education, practice management, and support that has established it as an authority on investment fiduciary insights. It’s mission is to promote a culture of fiduciary responsibility and improve the decision making processes of investment fiduciaries. Fiduciary 360 has developed the training programs that lead to the Accredited Investment Fiduciary (AIF) and Accredited Investment Fiduciary Analyst (AIFA) designations.
CEFEX Recordkeeper certification programs are based on a Standard of Practice developed with the American Society of Pension Professionals and Actuaries ( ASPPA). ASPPA is a national organization of more than 6,000 retirement plan professionals who provide consulting and administrative services for qualified retirement plans covering millions of American workers. ASPPA members are retirement professionals of all disciplines including consultants, administrators, actuaries, accountants, and attorneys. The large and broad-based ASPPA membership gives it unusual insight into current practical problems with the Employee Retirement Income Security Act and qualified retirement plans with a particular focus on the issues faced by small- to medium-sized employers. ASPPA membership is diverse and united by a common dedication to the private retirement plan system.
CEFEX-certified firms are entitled to join the Investment Fiduciary Leadership Council (IFLC). IFLC is an international association of Investment Advisors, Investment Managers, and Investment Stewards. IFLC's mission is to provide its members with the market visibility, resources, information, and leadership needed in order to influence positively the worldwide fiduciary community.
Assessment Process
[edit]CEFEX conducts assessments according to the principles of the international standard ISO/IEC 17021: Conformity Assessment – Requirements for bodies providing audit and certification of management systems. Observance of these principles is intended to ensure that CEFEX operates its management system certification in a competent, consistent and impartial manner, thereby facilitating the recognition of CEFEX and the acceptance of its certifications on a national and international basis. The ISO 17021 standard serves as a foundation for facilitating the recognition of CEFEX certification in the interests of national and international trade.
Certification of a management system provides independent demonstration that the management system of the organization: a) conforms to specified requirements, b) is capable of consistently achieving its stated policy and objectives, and c) is effectively implemented.
The assessment thereby provides value to the organization, its customers and interested parties. The overall aim of certification is to give confidence to all parties that a management system fulfils specified requirements. The value of certification is the degree of public confidence and trust that is established through an impartial and competent assessment by a third-party. Parties that have an interest in certification include, but are not limited to: a) the clients of the certification bodies, b) the customers of the organizations whose management systems are certified, c) governmental authorities, d) non-governmental organizations, and e) consumers and other members of the public.
Principles for inspiring confidence include impartiality, competence, responsibility, openness, confidentiality, and responsiveness to complaints.
External Committee
[edit]CEFEX has an external committee, the CEFEX Advisory Council, to safeguard the impartiality of the activities of the certification body with the following roles: a) to assist in developing the policies relating to impartiality of its certification activities, b) to counteract any tendency on the part of a certification body to allow commercial or other considerations to prevent the consistent, objective provision of certification activities, c) to advise on matters affecting confidence in certification, including openness, public perception and governmental oversight.
The Assessment
[edit]The assessment program includes an initial audit, and annual renewal assessments. The determination of the extent of assessment considers the size of the client organization, the scope and complexity of its management system, products and processes, as well as demonstrated level of management system effectiveness and the results of any previous audits.
The CEFEX assessment is based on the international standard, ISO 19011: Guideline for quality and/or environmental system auditing, and is adjusted so as to align with the needs of the investment industry. The assessment contains the following elements:
Initial preparation In determining the time required for an assessment, CEFEX considers, among other things, the following: a) the requirements of the relevant management system standard; b) size and complexity; c) technological and regulatory context; d) outsourcing of any activities included in the scope of the management system; e) the results of any prior assessments; and f) the number of sites to be assessed. Where a candidate’s management system covers the same activity in various locations, CEFEX allows for the sampling of locations to ensure a representative assessment of the system. In this situation, only a sample of the candidate’s locations would require an on-site visit, at each assessment.
Pre-assessment (optional)
The optional on-site preliminary assessment conducted prior to the Certification Assessment, allows for the identification of any major issues with practice implementation and feedback regarding the candidates readiness for the Certification Assessment. It is typically conducted in one day. In addition, it provides additional insight to both the Analyst and the candidate for planning the Certification Assessment. The Analyst will provide an informal written report listing potential areas of non-conformity and/or opportunities for improvement. To ensure the impartiality of the Certification Assessment, the Analyst cannot provide consultative advice on how to correct the non-conformities.
Off-site document review The Analyst will typically request documentation from the candidate which can be transmitted electronically or by mail/courier delivery.
Assessment Plan This is an agreement with the candidate regarding the conduct and scheduling of assessment activities.
On-Site Assessment
[edit]The objective of the assessment is a) to examine and verify the structure, policies, processes, procedures, records and related documents of the candidate’s management system, b) to determine that these meet all the requirements relevant to the intended scope of certification, c) to determine that the processes and procedures are established, implemented and maintained effectively, to provide a basis for confidence in the candidate's management system, and d) to communicate to the candidate, for its action, any inconsistencies between the client's policy, objectives and targets (consistent with the expectations in the relevant standard) and the results.
Post-assessment Activity
[edit]CEFEX provides a written report for the assessment. The Analyst may identify opportunities for improvement (OFI) but should not recommend specific solutions. The Analyst may also identify nonconformities. Communicated in a Nonconformity Report (NCR), these stop the registration process, and the candidate is given 90 days to institute corrective action for the elimination of the NCR.
Registration
[edit]The final decision for registration is made at the independent CEFEX Registration Committee (CRC) meeting, where the Analyst presents the assessment package. Prior to making a decision for registration, the CRC confirms that: a) the information provided by the Analyst is sufficient with respect to the certification requirements and the scope for certification; and b) it has reviewed, accepted and verified the effectiveness of correction and corrective actions, for all nonconformities. The objective of the CRC is to ensure a consistently rigorous evaluation of candidate’s adherence to the relevant Standard.
Annual Renewal Assessments
[edit]Annual renewal assessments are performed to ensure continued adherence to the Standard, and typically require less time to perform, since initial information has already been collected, and the candidate is familiar with the process. The Analyst will review whether the certified firm has implemented actions to address the previously issued OFI’s.
CEFEX assessments are performed by industry professionals who hold the Accredited Investment Fiduciary Analyst (AIFA) designation and have appropriate industry training and experience. Assessments performed for the ASPPA Recordkeeper certification must be conducted by professionals also hold the ASPPA Qualified 401(k) Administrator (QKA) designation.
See also
[edit]References
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