New IFIA Corporate Governance Code For Fund Services Providers

The Irish Funds Industry Association ("IFIA") has recently issued a voluntary Corporate Governance Code for Fund Service Providers (the "Code"), which will sit alongside its 2012 Corporate Governance Code for Collective Investment Schemes and Management Companies.

Nature of the Code

Although the Code is a voluntary one, its adoption is not only recommended by the IFIA but, as set out in its foreword to the Code, encouraged by the Central Bank.

The Code proposes a "comply or explain" type approach whereby a Fund Service Provider subject to the Code would indicate either in its Annual Report (as part of its financial statements) or on a website whether it had adopted the Code and, if so, whether in full or in part, setting out any reasons for non-adoption or for its decision not to comply with certain parts of the Code.