Dora Compliance for Funds: Achieving Digital Resilience through outsourced solutions

DORA Compliance for Fund Managers

January 17, 2025, marked a significant turning point for the financial sector, including fund managers, when the Digital Operational Resilience Act (DORA) officially took effect. This comprehensive EU regulation introduces stringent standards for IT risk management, third-party oversight, and operational continuity specifically designed to strengthen the digital resilience of financial institutions.

For fund managers, juggling multiple regulatory demands, DORA compliance represents yet another critical requirement that demands attention and resources. The question is no longer whether your fund needs to comply, but rather how to achieve compliance efficiently and effectively while maintaining focus on your core investment activities.

What DORA Compliance Means for Fund Managers

DORA compliance requires fully regulated funds under the European AIFMD regulations to demonstrate robust digital operational resilience across several key areas:

IT Risk Management: Implementing comprehensive frameworks to identify, assess, and mitigate technology risks
Third-Party Oversight: Ensuring rigorous monitoring and management of technology service providers
Incident Response: Developing effective protocols for addressing and reporting cybersecurity incidents
Testing and Resilience: Conducting regular testing of digital systems and maintaining business continuity
Information Sharing: Participating in threat intelligence sharing with regulatory authorities

Recent announcements from the Autoriteit Financiële Markten (AFM) indicate that regulatory scrutiny will immediately begin in February 2025, with detailed information requests on operational resilience frameworks. This timeline means that fund managers need to ensure their operations meet DORA's exacting standards.

The Outsourcing Solution: Achieving DORA Compliance Through Partnership

For many funds, building internal systems that meet DORA compliance requirements represents a significant investment of time and resources. Outsourcing key operational functions to specialized partners with DORA-compliant systems offers a strategic alternative that can deliver both regulatory compliance and operational efficiency.

Trustmoore does exactly that. We provide fund managers with Fund adminidtration, TA services and third party manager services backed by IT solutions designed to address DORA compliance requirements. By leveraging our DORA-compliant platforms FundsMoore (powered by FIS) fundmanagers can effectively outsource operational functions while simultaneously complying to key elements of the DORA regulation.

How Trustmoore Delivers DORA Compliance for Funds

Our approach to supporting fund managers with DORA compliance centers on three core services, all delivered through systems that meet DORA's stringent requirements:

1. DORA-Compliant Fund Administration

Our FundsMoore platform delivers comprehensive fund administration services with built-in digital resilience features that satisfy DORA requirements, including:

Secure data management with robust encryption and access controls
Automated backup and recovery systems
Continuous availability monitoring and redundancy
Regular penetration testing and security assessments

2. Investor KYC Processes That Meet DORA Standards

Our investor onboarding and KYC verification systems incorporate:

Secure document management
Resilient systems designed to maintain continuity during disruptions
Regular testing and validation of security measures

3. DORA-Aligned Reporting Solutions

Our reporting infrastructure is built to address DORA's expectations for:

Data integrity and validation
System redundancy and failover capabilities
Secure transmission of sensitive financial information
Incident management and reporting protocols

The Strategic Advantage of Outsourced DORA Compliance

By partnering with Trustmoore for these critical functions, fund managers gain multiple advantages:

Focus on Core Competencies: Redirect internal resources away from complex compliance projects toward investment activities
Leverage Specialized Expertise: Benefit from our deep experience in administration, reporting, investor onboarding, KYC and digital resilience
Reduce Complexity: Simplify your operational landscape by consolidating multiple functions with a single DORA-compliant partner
Demonstrate Due Diligence: Show regulators that you've selected a partner with robust DORA compliance measures

DORA Is Now in Effect: Urgent Steps for Fund Managers

With DORA regulations now in full force since January 17, 2025, and AFM already beginning their information requests, fund managers who haven't achieved full compliance must act immediately:

Conduct Emergency Compliance Assessment: Rapidly evaluate existing systems against DORA requirements to identify critical vulnerabilities
Implement Stopgap Measures: Deploy immediate solutions for the most pressing compliance gaps to minimize regulatory exposure
Accelerate Strategic Outsourcing: Quickly transition eligible functions to DORA-compliant partners to achieve rapid compliance
Prepare for Regulatory Scrutiny: Develop documentation that demonstrates your active compliance efforts and remediation timeline

Partner with Trustmoore for DORA Compliance

Trustmoore simplifies DORA compliance for fund managers through our purpose-built, resilient digital platforms. Our administrative and investor reporting & portal solutions not only address the technical requirements of the regulation but deliver operational efficiencies that benefit your fund and investors alike.

Contact our team today to discuss how our DORA-compliant fund administration, KYC verification, and reporting & portal solutions can strengthen your fund's digital resilience while reducing the operational burden on your internal teams.

Reach out to us today

Lotte Thonen
Head of Business Development Netherlands
& Global Head of ESG/Sustainability
lotte.thonen@trustmoore.com