The NED has been consulting far and wide on developing a fund board capability rating system to help investors over the last couple of months. The result of that consultation is to start this process with a form of recognition for those funds that have passed a threshold in constructing a board that investors can have confidence in.

We would like to find a way of rewarding those funds that have made the effort to construct impressive boards and, at the same time, to encourage others that are not in this category to do more to move on up into it.

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Almost every entity connected to a fund is well-regulated – indeed over-regulated - except for the one that matters most: the board itself. Why is that?

The last thing that anyone needs right now is yet more regulation. Nonetheless it is worth asking why the focus of regulatory oversight in this business has always been on the role and responsibilities of a board’s directors rather than on the board itself.

It is of course the case that all the vital activities that a board carries out, and for which it is responsible, are regulated.

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