SBAI Publishes Update To Standardised Board Agenda
Alternative investment standards organisaton the Standards Board for Alternative Investments has published an update to its Standardised Board Agenda document, which is designed to provide guidance to fund directors, managers and investors an overview of issues and topics covered in a fund board meeting. The original version was published in April 2014.
The update comes after the SBAI's Governance Working Group - formed in 2018 - conducted an extensive review of fund governance frameworks in key investment fund jurisdictions, including the Cayman Islands, Ireland and Luxembourg. The agenda now includes a declaration and review of conflicts of interest of fund directors, a review of structural conflicts of interest (e.g., between different funds of the same manager), a more extensive review of the fund manager’s Management/Executive Committee Report, a review of non-audit services provided by the auditor and an assessment of independence of the audit firm.
Kai Rimpi, Head of Hedge Funds at Varma, the Finnish Pension Insurer, and member of the working group, said: “Investment managers and Fund Directors are encouraged to review the Standardised Board Agenda and to tailor it to the specific characteristics of the fund. From an investor’s perspective, the agenda provides a useful benchmark for due diligence of a fund’s governance arrangements.”
The Standardised Board Agenda forms part of the SBAI Toolbox, which complements the Alternative Investment Standards by providing additional guidance to managers, investors and fund directors on practical issues such as Administrator Transparency Reporting, Standard Total Expense Ratio (STER) calculation methodology and Cyber Security.
Currently, the Governance Working Group is reviewing a number of other topics, including co-investments, investment manager committee structures and conflict of interest between fund directors. The GWG comprises members from Aalto University Foundation, Aktia Asset Management, Albourne, APG, Bluebay Asset Management, CQS, Elo Mutual Insurance Company, HealthCo Group, Ionic Capital Management, Lansdowne Partners, Martlet Asset Management, New Holland Capital, Nordkinn Asset Management, Northpeak Governance, Orchard Global Asset Management, Ontario Teachers’ Pension Plan, Periscope Capital, Pictet Asset Management, PIMCO, PSP Investments, The State Pension Fund of Finland (VER), Transtrend, Unigestion and Varma Mutual Insurance Company