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Alternative Market Briefing

Weavering, FATCA dominate fund governance discussions according to directors' poll

Friday, April 12, 2013

Bailey McCann, Opalesque New York:

In an era of new regulations, fund governance is a hot topic for funds and investors alike. The AIFMD will come into force in July, just a few short months away, and the new US tax regime - FATCA, is on the horizon for January. As the guidance surrounding these new rules unfolds, a recent survey sheds light onto how stakeholders are approaching the new requirements.

DMS Offshore, the leader in fund governance recently conducted its first ever poll of fund directors to get a sense of what issues are driving decisions. "The poll really captures the crux of the conversations happening around governance," says Kathleen Celoria, executive director, DMS Offshore in an interview with Opalesque. "A lot of people are turning their attention to FATCA now, and it's really the next big thing on the horizon."

In the poll, respondents noted changes in the way institutional investors are doing due diligence and approaching fund governance overall. According to the data, 2012 saw an increase in the number of on-site visits, and interviews institutions are completing as part of their due diligence review. The questions institutions are asking have also changed, investors are placing a greater focus on transparency, reporting, and notably, how independence is defined when it comes to fund directors. Data shows that institutions often......................

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