Why the FCA did it

Why did the FCA decide to do it? This seems to have been lost in all the interest and debate taking place – both in the UK and beyond – about the fund governance reforms to the UK. The answer to this question is key to understanding what this is all about.

Having independents on fund boards is a means to an end. The end is to stop the overcharging that the FCA has accused authorised fund managers (AFMs) of undertaking during this recent bull run. The point is that AFMs are expected to bring about a change in the culture at board meetings – and it is hoped that the introduction of independents to them will do the trick.

To read more about this, see the April issue of The NED.