The FCA’s requirement to have independents on asset managers’ boards is just a means to an end. The FCA believes it will help protect investors and bring down fees. But there is no guarantee that this will occur. If doesn’t what will do the FCA do next?

The board’s job is to balance the interests of the investors in its funds with the asset manager’s shareholders. The FCA believes that UK manager boards have got the balance wrong: they have too often favoured their own shareholders at the expense of their investors.

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A surprisingly large number of funds domiciled in Cayman use corporate directors only. What does that mean for the governance of these funds?

Over the last 8 years The NED has published large numbers of articles on every aspect of fund governance imaginable, with one exception it seems: corporate directors. Until we undertook our review of Cayman fund boards, in The NED’s December issue, we had no idea that they are used as extensively as they are in this jurisdiction. (Outside the Caribbean they are hardly used at all, other than in the US.)

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