Senior Consultant to our
Fund Services team, Melville Rodrigues
explains how UK fund boards should pre-empt the FCA needing to impose further
mandatory reforms.*
*
Article originally published by Portfolio Adviser on 27 July
2020.
Ahead of the Financial Conduct Authority resuming its scrutiny
of the role of independent directors on the boards of authorised
fund managers, managers need to address two questions: how
effective have been FCA reforms introduced last September for
independent directors on their boards? Have the reforms instead led
to a "tick box" minimalist compliance?
A recent Fund Boards Council (FBC) survey indicates that, in at
least four out of five authorised fund manager (AFM) boards, there
are just two independent directors: a survey based on a sample of
about 100 AFM board member responses. This points to a substantial
"tick box" minimalist compliance with a key requirement
of the FCA reforms introduced in September for boards of
