UK fund boards set for overhaul as independence significantly lower than incoming FCA rules

Only 11% of current boards are independent

Asset managers will need to overhaul their UK fund boards in order to meet the Financial Conduct Authority's (FCA) new rules designed to beef up independence, as research shows current boards are "light" in this area and firms have a "marked absence" of formalised board practice and procedure.

The inaugural State of the UK Fund Boards 2018 study, conducted by research consultancy UK Fund Boards (UKFB), found just 11% of board members are independent - some way off the 25% the FCA has said it expects in 18 months' time.  In addition, gender diversity was also "weak" with only 17% of members being female, markedly lower than the broadly-accepted target of 30% on FTSE 100 boards and lower than the 22% female presentation on investment trust boards. Market study As announced in April in a policy statement following the regulator's Asset Management Market Study, the FCA said i...