Distributor Due Diligence

Distributor Due Diligence Ltd, also known as 3D, was established in 2018 by co-founders Steve Bennett and Fabian Richter. The firm operates as a technology solution catering to the capital markets, specifically addressing the need for streamlined due diligence processes for fund distributors. In November 2021, Carne Group, a major player in governance and compliance for the asset management industry, acquired 100% of the shares in Distributor Due Diligence Ltd. This strategic acquisition positioned Carne as a global market leader in fund distribution due diligence and allowed for the integration of 3D's platform with Carne's proprietary CORR technology.

The company's core business revolves around a centralized platform that simplifies the extensive due diligence required by fund managers when vetting their distribution partners. Its clients are primarily fund managers and intermediaries who must perform oversight on the distributors and institutional clients of their funds globally. The business model addresses a significant inefficiency in the market where distributors would often have to complete multiple, varied questionnaires for different fund managers. By offering a single, standardized questionnaire that meets the requirements of all major fund domiciles, the platform saves time and resources for both sides of the transaction. Distributors can complete one comprehensive questionnaire and share it for free with all their fund manager counterparties, while asset managers can reportedly save over 80% of the resources typically required for this oversight function.

The platform's service is built on the principles of unity and simplicity. It provides a single, centralized audit trail and workflow management system with multi-language support. A key feature is the standardized due diligence questionnaire (DDQ) that covers regulatory requirements across various international fund domiciles, including standards like the ICI and Wolfsberg questionnaires. The platform also offers features like pre-population of answers from existing documents, workflow tools to assign sections to different experts, risk rating methodology, and ongoing monitoring modules. Following its integration into Carne, the service has been enhanced by Carne's broader capabilities, including the 'Curator' platform, which provides solutions for risk, compliance, and oversight across the entire fund lifecycle.

Keywords: distributor due diligence, fund distribution, asset management compliance, regtech, due diligence platform, fund manager solutions, financial crime compliance, KYC, KYD, investment fund oversight, Carne Group, CORR platform, 3D, Fabian Richter, Steve Bennett, third-party risk management, fund governance, financial services technology, due diligence questionnaire, AML screening