SSAE16

Internal control quality acknowledged
based on international standards

The SSAE16 Report

Since 2003, DIAM had prepared the description of the Institutional Discretionary Investment Advisory Operations system （hereafter referred to as “the Descriptions”) in accordance with the American Institute of Certified Public Accountants (AICPA) Statement on Auditing Standards No. 70 (SAS70).  The Descriptions had been examined by an independent auditor.  From 2011, we have started to prepare the Descriptions and the assertion letter about the fairness of the presentation of the Descriptions and the suitability of the design and the operating effectiveness of the controls in accordance with the new Statement on Standards for Attestation Engagements No.16 (SSAE 16).The Descriptions have been examined by an independent auditor.

We will continue to pursue the enhancement of our service level and the quality of our operation to respond to our clients' trust as an entrustee of the discretionary investment management busineses.

The SSAE16 Standards

The Statement on Standards for Attestation Engagements (SSAE) No.16, Reporting on Controls at a Service Organization is an attestation standard put forth by the AICPA. SSAE16 effectively replaces SAS70 as the authoritative guidance for an independent auditor’s opinion on whether the service organization’s description of its system is fairly presented, and whether the controls over that system were suitably designed and operating effectively. Given the general increase in outsourcing of services, service organizations have an increased responsibility to monitor and practice due diligence with regard to third-party operations, and must demonstrate that they have adequate controls and safeguards in place when they host or process client data. In line with this trend, SSAE16 has become a widely-accepted standard by which to measure service organizations’ quality.

• SSAE16