Fund service providers will have to introduce an independent director to their boards under a new corporate governance code in Ireland.
The Irish Funds Industry Association (IFIA) has introduced the new corporate governance code with the backing of the Central Bank of Ireland.
Central to the new code is the introduction of an independent director to the board of each service provider. In addition, the framework also suggests that no individual shall have unfettered decision-making powers.
The code also ensures a clear set of responsibilities for the board, including oversight, risk and compliance. The boards are also responsible for key appointments, and the prevention of any conflicts of interest.
The IFIA feels the code will be of benefit to all funds service providers, but is to be only introduced on a "comply or explain" basis, which allows fund service providers a degree of flexibility.
For those providers choosing to adhere to the code, the IFIA has recommended a transitional period of 12 months.
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