The Guide takes account of regulatory and tax reforms since the financial crisis, such as the AIFMD and the Foreign Account Tax Compliance Act.
The Guide is designed to be used by investment managers, fund promoters and existing and prospective fund directors. New sections have been added covering, among other topics, the general approach to fund governance, monitoring of trading practices and business continuity planning.
Practical, legal and tax considerations when selecting and appointing fund directors are considered. The basic tasks that fund directors should carry out are explained, while issues relating to the way in which fund directors manage their relationships with the fund’s service providers are also discussed.
Guidance is provided on several important issues, including, for example, the review of annual audited accounts and issues relating to directors’ and officers’ liability insurance. In addition, the Guide assesses the impact of taxation on the fund, its service providers and its directors.
Jack Inglis, AIMA CEO, said: “The role and responsibilities of hedge fund directors and boards have changed significantly since the financial crisis. We hope that this Guide will provide timely and useful guidance to existing and potential directors of hedge funds to help them better understand their role and responsibilities as directors, as well as providing information for investment managers about what they should reasonably expect from fund directors.”
Inglis added: “The production of this updated Fund Directors’ Guide would not have been possible without the generous giving of their time by a number of our members, and I would like to thank them all for their support.”
Full Guide (AIMA membership required)
Executive summary of the Guide
Full press release
© AIMA - Alternative Investment Management Association
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