Transition Management Industry Drafts Best Practices

October 23, 2007 ( - The transition management industry has drafted a list of best practices, called T-Charter, to help guide transition management firms.

According to a press release , these guidelines are meant to promote clarity and transparency in an area that is extremely complex.

Some of the guiding principles listed in the charter include:

  • Transition managers should avoid any conflicts-of-interest by putting the client’s interest first and making sure that transition management activity is kept separate from areas of the firm that have a conflicting interest.
  • Transition managers should have documented policies or procedures and systems in place to protect client confidentiality.
  • Transition managers should have appropriate resources to support and efficiently manage the transition process in line with the client’s objectives.
  • The Transition Manager maintains a clear audit trail of transition activity and makes this information available to the client upon request.
  • The manager should also support the transition process with trading, bookkeeping, risk and performance reporting systems that provide and maintain data that is both accurate and timely.

“The T-Charter signifies an important step in the transition management industry’s evolution,” said Paul Sachs, U.S. Director of Mercer Sentinel Group, which helped draft the guidelines. “In Mercer’s view, this is necessary to ensure clarity and transparency in an area that is extremely complex. Mercer Sentinel Group has been pleased to assist the working group because we believe the T-Charter’s core principles are critical for our clients.”

For the full list of guidelines, go here