Why fund governance is more important than ever
The topic of fund governance has been rising steadily up the
agenda on both sides of the Atlantic in the past few years. While
issues like the relative independence of directors sitting on the
boards of hedge funds in the Cayman Islands has garnered plenty of
media attention, the wider asset management industry is also being
asked to address governance issues by regulators and investors.
The guidance and research contained in this study were prompted
by the 'Dear CEO' letter published by the then Financial
Services Authority (now the Financial Conduct Authority) last year,
which drew specific attention to the sometimes inferior management
of conflicts of interest at UK-regulated fund management firms, as
well as the SEC's public statement that it is a key focus area
for them. Anecdotal evidence collected by Carne from institutional
allocators in the last 12 months has also demonstrated an awareness
on the part of
