Does fund governance matter?

How much fund governance matters depends on the category that the fund is in and also on the jurisdiction it is domiciled in. Some jurisdictions take fund governance more seriously than others. Those that take it seriously believe that competent boards give credibility to their funds and to their jurisdiction. Others can take a different point of view.

As The NED develops its analysis of fund boards and independent directors it has found itself being drawn into discussions with individuals and associations in a number of jurisdictions on the views that they have on the role of fund governance in the industry. Back in the spring a good number of these conversations were with associations and individuals in Guernsey and Jersey. Then in the summer similar discussions have been held with people in the Cayman fund industry.

In the Channel Islands there seems to be a consensus that fund governance really does matter. And, if anything, it is going become more important in future years. However, the view from Cayman can be somewhat different.

To read more on this story see the August issue of The NED.