UK fund board overhaul rules must be stricter to achieve 'substantial change'

Six months before deadline

Industry commentators have warned the Financial Conduct Authority's (FCA) requirements for all UK open-ended funds to have at least two or 25% of independent non-executive directors (iNEDs) on their boards will not "transform the industry" and does not go far enough.

With exactly six months left for fund groups to implement the rule, which was one of the many 'remedies' outlined last April by the FCA following its Asset Management Market Study in 2017 and was included to ensure a "balance of interests" for fund investors and shareholders and encourage "greater scrutiny and challenge', some have said the "change" brought about will be minor. However, Philip Warland, former senior advisor for the Investment Association, said he is concerned the FCA has unrealistic expectations the rule will transform the industry. "It will not," he said. "Change wil...