ControlConsult S.à.r.l.


1. COST CONTROL - AN OVERVIEW

Key questions regarding financial transaction costs Do you know how high the total cost of doing business with your Financial Service Provider (FSP) was the last 12 month? Did you pay too much? If yes, on which transactions ...and with which financial service provider? Which effect do these costs have on your performance?

...and their answers ControlConsult's services encompass the whole range of measurement, control and analytical procedures to ensure that FSP comply with cost agreements.

Are you...? the owner of financial assets responsible for a family fortune a trustee for funds held in trusts an administrator of a pension fund a company treasurer or financial officer the member of a foundation board responsible to defend shareholders' values a lawyer a tax advisor a consultant specialising in advice on the selection of FSP

What are your requirements ? Do you need to identify your optimal cost structure? Are you keen to improve your level of supervision being exerted over those costs for which you are responsible? Do you wish to ensure that cost profiles are being complied with? Do you want to delegate this work to a neutral and professional third party?

Why do we need cost control ? Imposing a set of cost restrictions and constraints (i.e. cost profiles) on FSP is one thing. It is quite another to ensure that they are complied with. Increasingly, there is a demand in the market place for effective, objective and impartial cost control. ControlConsult will help you identify those costs with your FSP which are correspond to your investment profile. Preventive measures will be suggested in regards to your individual cost profile. In order to rectify as soon as feasible any failure to comply with cost profile restrictions, ControlConsult regularly and automatically checks that all cost restrictions and constraints imposed in the various agreements with the FSP are rigorously adhered to. ControlConsult will then suggest corrective measures to be taken.

What are your benefits ? The ever-increasing popularity of using ControlConsult's cost monitoring services to control your costs regarding financial transactions is due to multiple key benefits of such a solution: ControlConsult provides the investor or his advisors with an overview of all the cost restrictions being imposed on FSP as well as an overall assessment of all the checks and controls undertaken. The overview This is a summary table incorporating all the various restrictions or constraints of the individual cost profile imposed under the terms of all relevant FSP agreements. An effective and accurate monitoring system For each transaction and each FSP, the findings from the checking procedures are clearly marked: OK or NOT OK. A detailed appraisal of any failure to comply In the event of any failure to comply with a specific restriction, full details are provided: transaction date, transaction type, transaction name, cost discrepancy, etc.

...and the consequences : improved ControlConsult through permanent and consolidated cost monitoring; uniform source of communication and formats for all reports across each FSP; uniform comparison: calculation methodologies, cost analytics and formats of presentation are identical for each account.    This makes the objective cost comparison of FSP and the assimilation of (cost-relevant) information much easier; one neutral counterpart for all cost enquiries; helpful tool for tax reclamation purposes (where costs may be tax deductible).

2. CONTROLCONSULT'S CAPABILITIES

Background Confronted with the growing demand of private and institutional financial investors, financial institutions and regulators for a neutral control instrument regarding costs incurred within the financial sector, a group of experienced international lawyers, bankers and computer experts were asked to develop a systematic process to analyse, monitor and control investors' total costs of doing business with their FSP. In conjunction with ControlConsult's capability to provide the basis for preventive and corrective measures to investors regarding financial costs incurred, the services ControlConsult provides offer a unique protective instrument for the investor.

Our mission Our primary goal is to safeguard financial investors' interests and: 1.) to provide financial investors, intermediaries and advisors with a control tool for costs in relation to financial transactions. Whenever expected returns are threatened by volatile and/or adverse markets, a neutral assessment of costs and their adherence is likely to play an important role in the selection process of FSP; 2.) to provide detailed analysis of financial transaction costs to those responsible for achieving capital preservation and/or the highest performance within a given risk profile, while reducing costs to achieve these returns and/or at least to assure that these costs are adhered to; 3.) to monitor over time the trends in cost structures in the overall market and between various FSP; 4.) to enable a more efficient comparison and selection of FSP ControlConsult can also provide assistance when it comes to stipulating the cost profiles at the time when agreements between investors and FSP are concluded. Our policy is to provide a highly efficient service in which we strive to ensure that investors continuously obtain a: clear understanding of costs related to their financial investment transactions and their FSP; transparent cost structure before such transactions are carried out (preventive recommendations); permanent compliance monitoring of costs after such transactions have been carried out; complete compliance report on every transaction; cost comparison of all FSP monitored; cost/performance benchmarking; instant access to cost-related information; basis for corrective measures regarding their FSP

Our core service package ControlConsult provides the following services as part of our core service: analysis of current cost structures (preventive measures) definition and establishment of cost profiles per account personalized definition of cost control parameters permanent cost control systematic plausibility control (daily highs/lows) complete cost compliance reports cost comparison reports cost scenarios

3. REPORTING

Standard Reporting Depending on individual wishes and requirements, financial investors may choose from a menu of executive reports. These are usually produced on a monthly basis. Costs refer to internal, external and settlement costs. Total costs per FSP in reference currency* per FSP in relevant transaction currencies* as % of assets per FSP Cost Break-down per FSP by cost type* per FSP by transaction type* per FSP by transaction vehicle* per FSP by cost periodicity* Total Cost Discrepancies per FSP in reference currency* per FSP in relevant transaction currencies Cost Discrepancies Break-down (by account) by cost type per FSP * by transaction type per FSP * by transaction vehicle per FSP* by cost periodicity per FSP* Non-compliant transactions list of all non-compliant transactions per account/FSP sorted by type of cost, type of transaction,     transaction vehicle and cost periodicity ratio of non-compliant transactions in relation to total number of transactions

Special reporting Investors may choose to add the following reports: total costs per transaction name* total costs discrepancies per transaction name* total costs for pre-determined ranges of trade dates* total cost discrepancies for pre-determined ranges of trade dates* and any other combination of ControlConsult's parameters -------------------------------------------------------------------- * in transaction & reference currencies

Cost Scenarios The financial investor - interested in determining what a certain (or all) transaction(s) would (have) cost with any other FSP, subject to ControlConsult's monitoring services - will be able to compare various FSP amongst each other at the touch of a button. A comparison with FSP not covered by our monitoring services may be realized by establishing a virtual cost profile for these. This enables the investor to efficiently compare and select those FSP he potentially wishes to give business to.

4. WHY SELECT CONTROLCONSULT AS YOUR PARTNER

Background As a truly neutral partner of our clients, ControlConsult is neither commissioned by any FSP subject to our cost control functions nor does ControlConsult have any financial interest in them. Free of any financial conflict of interest, ControlConsult's services are conducted on a completely professional and independent basis.

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