Glossary · Operations
Standard Operating Procedure (SOP)
A standard operating procedure is a documented, step-by-step instruction for performing a recurring operational task consistently, including owners, inputs, controls and escalation.
In fund operations, SOPs cover processes such as trade capture, reconciliations, NAV production, capital calls, investor onboarding, wire release and corporate actions. A good SOP states the purpose, frequency and deadline, systems and data sources, step-by-step actions, control checkpoints (including four-eyes review), exception handling and escalation contacts.
SOPs are the basis for training, backup cover and audit. Due diligence questionnaires (DDQs) and service-provider audits routinely ask for them, and they are central to any transition between administrators or to an outsourced team. Fundtec builds an operational handbook of SOPs in the first phase of every managed investment operations engagement.
Common weaknesses are SOPs that are out of date, written at too high a level to be followed, or that describe an ideal process rather than the actual one. A version-controlled SOP library with an owner per document and a scheduled annual review keeps procedures aligned with how work is actually done.
Related terms
Where this comes up in our work
Controls & Governance
Controls are not a layer we add for audit season. They are how each process is designed, documented and reviewed from the first day of an engagement.
Read more →Managed Investment OperationsManaged Investment Operations
We run defined operations for your funds on our own platform, with a dedicated team that owns the process. You get the technology and the people to…
Read more →Tell us where your operations need to be in twelve months.
A 30-minute scoping call with our team. You leave with a clear view of scope, transition timeline and indicative pricing.