How should I go about due diligence (initial and ongoing) on a Discretionary Fund Manager (DFM)?

Start by reviewing your client base and determine who might benefit from a DFM solution. Third party consultancy services can give you a list of providers capable of meeting your client requirements. Analyse and question providers using RFIs, meetings with representatives, and take soundings from peers. Once decided upon your provider(s) ensure that the responsibilities and obligations of both parties are clearly documented in a terms of business document signed by all parties.

You should carry out regular ongoing reviews and an open dialogue.