iNEDs and effective fund governance

Following the Asset Management Market Study in 2017, the FCA brought in a series of new rules designed to ensure fund managers appoint at least two Independent Non-Executive Directors (iNEDs) to their boards. These individuals play an important role supporting and challenging the board in its oversight of the fund to ensure it is managed in the best interests of all investors.

Just before these rules came into force in September 2019, we launched our iNED Club to support iNEDs within the investment management industry through a suite of resources including an online portal providing access to research and reports. These are designed to assist those new to our industry in getting up-to-date with the latest policy developments as well as being an essential resource for those already steeped in industry practice.

The iNED Club is also designed to bring new expertise from outside financial services onto fund boards, so as to provide fresh perspectives to the fund’s governance. Since then we have also delivered a comprehensive suite of practical training courses focussed on board governance and succession.

Our next briefing is taking place this coming Monday and looks ahead to the implications of the roadmap to mandatory climate-related disclosures. With further FCA consultation planned on extending reporting requirements, this is set to become an ever more important issue for the investment management industry. 

Our iNED resources go right to the heart of fund governance and are helping ensure iNEDs are able to bring their wide breadth of knowledge and experience to their boards. Whether it’s challenging the quality of information boards receive, shaping funds’ strategic direction or managing their culture or emerging risks, iNEDs are making important contributions to the good management of funds and I’m proud that our iNED Club has now reached more than 230 members – a sure sign iNEDs consider our resources invaluable to their work.

If you would like to get more involved in our growing iNED community, please get in touch with our Director for Business: Risk, Culture and Resilience, Pauline Hawkes-Bunyan, and check out our further resources on our iNED portal here

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