The Central Bank of Ireland (the Central Bank) has announced that among its planned themed reviews and inspections for 2014 will be a review of corporate governance of Investment Funds and Fund Managers, the aim of which will be to assess corporate governance arrangements for firms in this sector.
The Irish Funds Industry Association (IFIA) published the Corporate Governance Code for Collective Investment Schemes and Management Companies in 2011. This is a voluntary industry code, adoption of which is strongly recommended. It became effective on 1 January 2012 with a transitional period of 12 months until 1 January 2013.
The preparation of the Code followed an invitation from the Central Bank to the industry, through the IFIA, to develop a voluntary Corporate Governance Code for the funds industry in Ireland. A steering group was established to lead the project, made up of representatives from a wide range of industry constituencies: trustees, custodians, administrators, advisory firms, fund managers, independent directors and the Irish Stock Exchange. Following considerable engagement with and input from the Central Bank, the Code was agreed in 2011