The Listing Rules will continue to require that the Board of a Closed-ended Investment Fund must be able to demonstrate that it can act independently of the fund’s investment manager. “Independence” for this purpose will continue to be interpreted as now.

However, VCTs have lost the argument, being put forward fairly vociferously on their behalf, that the Board independence rules should not apply to them. The FSA has, however, taken note of the concerns raised about the limited availability of suitable Board-level talent and existing listed VCTs will have three years to comply with the Board independence rules (extended from the eighteen-month period proposed in CP 06/04). New VCTs seeking a listing for the first time under the Closed-ended fund standard will have to comply with the Board independence rules from the outset. This publication is written as a general guide only. It is not intended to contain definitive legal advice which should be sought as appropriate in relation to a particular matter.