IFIA corporate governance code for funds and management companies
Setting the tone for investment fund governance
On 14 December 2011 the Irish Funds Industry Association (IFIA) issued a voluntary corporate governance code for Irish authorised collective investment schemes (CIS) and Irish authorised management companies.
This follows an invitation by the Central Bank for the funds industry to develop and apply its own corporate governance code in place of the statutory code developed for banks and insurance companies.
While the IFIA code is voluntary in nature, the Central Bank considers it “essential” that all Irish authorised CIS adopt the code, albeit on a voluntary basis. The code becomes effective from 1 January 2012 with a twelve month transitional period until 1 January 2013.
The IFIA code draws on the existing corporate governance practices as outlined in the Central Bank Notices and the Companies Acts but also includes some significant changes and additional focus relating to:
- Independent directorships
- Time commitment of the board
- Conflicts of interest
- Board performance review
- Attendance at meetings
- Terms of reference for committees
- Director training
The code is accompanied by an extensive FAQ document which has been approved by the Central Bank and adds additional clarity.