AIMA publishes updated guide for fund directors

London – 29 April 2015: The Alternative Investment Management Association (AIMA), the global hedge fund association, has published an updated Fund Directors’ Guide.

 

The Guide, last published in 2008, takes account of regulatory and tax reforms since the financial crisis, such as the Alternative Investment Fund Managers Directive (AIFMD) and the Foreign Account Tax Compliance Act (FATCA), which have brought significant changes to the role and responsibilities of fund directors and boards.

 

The Guide is designed to be used by investment managers, fund promoters and existing and prospective fund directors.

 

New sections have been added covering, among other topics, the general approach to fund governance, monitoring of trading practices and business continuity planning.

 

Practical, legal and tax considerations when selecting and appointing fund directors are considered. The basic tasks that fund directors should carry out are explained, while issues relating to the way in which fund directors manage their relationships with the fund’s service providers are also discussed.

 

Guidance is provided on several important issues, including, for example, the review of annual audited accounts and issues relating to directors’ and officers’ liability insurance. In addition, the Guide assesses the impact of taxation on the fund, its service providers and its directors.

 

Jack Inglis, AIMA CEO, said: “The role and responsibilities of hedge fund directors and boards have changed significantly since the financial crisis. We hope that this Guide will provide timely and useful guidance to existing and potential directors of hedge funds to help them better understand their role and responsibilities as directors, as well as providing information for investment managers about what they should reasonably expect from fund directors.”

 

Mr Inglis added: “The production of this updated Fund Directors’ Guide would not have been possible without the generous giving of their time by a number of our members, and I would like to thank them all for their support.”

 

The 3^rd edition of the AIMA Fund Directors’ Guide has been sponsored by the law firm Schulte Roth & Zabel LLP.

 

- Ends –

 

Notes to editors

 

• The AIMA Fund Directors’ Guide is available to AIMA members at http://www.aima.org/en/document-summary/index.cfm/docid/3E551942-7A37-4ABB-AF7C608A3E8EEA70. An executive summary which includes an order form for hard copies available to members and non-members is available at http://www.aima.org/en/document-summary/index.cfm/docid/EB9CF41D-8796-460F-A18E54DB6B08EEF3.

 

·         Each AIMA member firm will receive one free hard copy of the Guide. Additional hard copies are available for purchase by members and non-members for a fee. Net proceeds from the sale of hard copies will be donated to Hedge Funds Care.

 

·         The Guide is not a substitute for specific advice, whether legal, regulatory, tax or other advice, nor for professional judgment. It does not seek to provide detailed advice or recommendations on wider ranging corporate governance issues.

 

For media enquiries, please contact:

Dominic Tonner, Head of Communications, AIMA

Tel: +44 20 7822 8380

Email: dtonner@aima.org

 

About AIMA

The Alternative Investment Management Association (AIMA) is the global hedge fund industry association, with over 1,500 corporate members (and over 8,000 individual contacts) in over 50 countries. Members include hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. AIMA’s manager members collectively manage more than $1.5 trillion in assets. All AIMA members benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals, and its excellent reputation with regulators worldwide. AIMA is a dynamic organisation that reflects its members’ interests and provides them with a vibrant global network. AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website, www.aima.org.