Investment Fund Governance
Developing a Risk-Based Oversight Framework
In response to the financial crisis there has been a focus on enhancing governance structures and processes right across the financial services sector. As a result there has been many developments across the sector that are designed to enhance governance and increase a Boards ability to implement Risk-Based governance methodologies. Indeed within the investment fund sector; boards, promoters and regulators have all worked to enhance the effectiveness of fund governance since the crisis. However there continues to be demands for further enhancements to the governance of investment funds.
The CIFD Institute and Deloitte are pleased to offer a Risk-Based Oversight Framework that can be implemented by investment fund boards and entities charged with governing investment funds. While the paper does not promote this model as the only appropriate governance model, nor does is it designed to address specific regulatory requirements that may apply to a fund, it does provide a practical methodology that takes account of the unique characteristics of an investment fund and puts investor protection centre-place.