What do Third-party Administrators (TPAs) do?

What do Third-party Administrators (TPAs) do?

• A. Audit financial statements
• B. Undertake investment administration on behalf of other firms
• C. Manage property portfolios
• D. Trade on behalf of clients

Answer: (B)

Third-party Administrators specialize in handling the administrative tasks that support investments for other firms. They take care of the day-to-day back-office work—record-keeping, processing contributions and redemptions, calculating and posting valuations, producing client statements, and regulatory reporting. This lets the investment firm focus on decision-making and client service while the administrator ensures accuracy and efficiency. They don’t audit financial statements—that’s done by external auditors. They also don’t manage property portfolios or execute trades on behalf of clients; those are handled by property managers or brokers/investment managers. So undertaking investment administration on behalf of other firms best describes what TPAs do.

Third-party Administrators specialize in handling the administrative tasks that support investments for other firms. They take care of the day-to-day back-office work—record-keeping, processing contributions and redemptions, calculating and posting valuations, producing client statements, and regulatory reporting. This lets the investment firm focus on decision-making and client service while the administrator ensures accuracy and efficiency. They don’t audit financial statements—that’s done by external auditors. They also don’t manage property portfolios or execute trades on behalf of clients; those are handled by property managers or brokers/investment managers. So undertaking investment administration on behalf of other firms best describes what TPAs do.