The deadline of 31 December 2012 to adopt the Corporate Governance Code for Collective Investment Schemes and Management Companies (the Code) is fast approaching. The Code became effective on 1 January 2012, with a 12 month transitional period. Boards have been adopting and will continue to adopt the Code over the course of 2012. The first statement of compliance with the Code will be included in accounts with a year end after the adoption of the Code.
Whilst the Code is voluntary, there is a strong expectation from industry and the Central Bank that it will be adopted.
Irish Stock Exchange listed corporate funds which are domiciled in Ireland must disclose details of corporate governance in the directors’ report of their annual accounts in accordance with the European Communities (Directive 2006/46/EC) Regulations 2009 (S.I. 450 of 2009). These funds have, in general, been referring to the earlier IFIA code in their accounts and, if and when they adopt the Code, will transition to referring to this Code. The Code operates on a "comply or explain" basis so that the board of a company which has adopted the Code and decides not to comply with any provisions must disclose the reasons for not complying in its directors’ report or on a publicly available medium (such as its website), the address of which will need to be included in its annual report.