Vendor Due Diligence Checklist for Financial Services

# Vendor Due Diligence Checklist - Financial Services

## Purpose
Complete before engaging any new vendor or supplier to reduce risk and set the foundation for a successful relationship.

## When to Use
A thorough due diligence checklist for evaluating new vendors covering financial stability, references, insurance, compliance, and service level agreements.

## Instructions
1. Review the template below and familiarise yourself with the structure
2. Replace all [bracketed placeholders] with your financial services business details
3. Customise the tone and formatting to match your brand
4. Save in your preferred tool (Notion or Airtable)

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## Vendor Due Diligence Checklist

### Business Verification (Owner: Procurement Manager)
- [ ] ABN verified on the Australian Business Register (abr.business.gov.au)
- [ ] Business name and trading name confirmed
- [ ] GST registration status confirmed
- [ ] Company registration verified with ASIC (ACN if applicable)
- [ ] Years in operation confirmed (minimum 2 years preferred for critical vendors)
- [ ] Physical business address verified (not just a PO Box)
- [ ] Key personnel identified (owner, account manager, escalation contact)

### Financial Stability (Owner: Finance Manager)
- [ ] Credit check completed (Dun & Bradstreet or similar)
- [ ] Financial statements reviewed for the last 2 years (if significant contract value)
- [ ] Payment terms reviewed and acceptable (30-day terms standard)
- [ ] Pricing structure transparent with no hidden fees
- [ ] Volume discounts or long-term pricing commitments discussed

### Insurance & Risk (Owner: Procurement Manager)
- [ ] Certificate of currency for public liability insurance obtained (minimum $10M)
- [ ] Professional indemnity insurance confirmed (if providing advisory services)
- [ ] Workers compensation insurance current for all their employees
- [ ] Adequate product liability insurance (if supplying physical goods)
- [ ] Cyber liability insurance confirmed (if handling your data)

### References & Reputation (Owner: Procurement Manager)
- [ ] Minimum 3 client references requested and contacted
- [ ] Online reviews checked (Google, industry forums, social media)
- [ ] No significant complaints with Fair Trading, ACCC, or industry bodies
- [ ] Industry certifications or memberships verified
- [ ] Case studies or examples of similar work reviewed

### Compliance & Security (Owner: Compliance Officer)
- [ ] Privacy policy reviewed for compliance with Australian Privacy Principles
- [ ] Data handling practices assessed (where is data stored, who has access)
- [ ] Modern slavery statement provided (if revenue over $100M or requested)
- [ ] Environmental and sustainability practices reviewed (if relevant)
- [ ] Subcontractor policies reviewed (do they subcontract, and if so, to whom)

### Contract & Terms (Owner: Legal / Procurement Manager)
- [ ] Service level agreement (SLA) defined with measurable performance metrics
- [ ] Termination clauses reviewed: notice period, exit costs, data return
- [ ] Intellectual property ownership clarified for any work produced
- [ ] Confidentiality or NDA executed before sharing sensitive information
- [ ] Dispute resolution process agreed (mediation before litigation)
- [ ] Contract reviewed by solicitor before signing (for contracts over $50K)

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**Complexity:** intermediate | **Setup time:** 20 minutes | **Tools:** Notion, Airtable

Note: This template has been tailored for financial services businesses in Australia. Adjust terminology and compliance references to match your specific context.