ASIC has released the findings of its review of the govcernance practices of 10 large responsible entities of managed investment schemes.
The review covers
- Board composition including tenure of directors and external commitments of directors;
- Board charters
- Board meetings and committees
- Board performance reviews and skills assessments
- Business models and reporting arrangements
- Staffing arrangements
- Outsourced service providers
- Related party transactions
- Use of independent experts
- Conflicts management
- Compliance management.
The findings included:
- Five of the 10 responsible entity boards had a majority of executive directors and one board had an equal number of executive and non-executive directors. Six boards had a majority of non-independent directors.
- Eight of the responsible entities obtained all of their staff resources from other entities in the same corporate group. These eight responsible entities did not employ their own staff.
- The responsible entities had documented delegation and reporting frameworks.
- The number of outsourced service providers the responsible entities engaged during the relevant period ranged from five to over 150. The responsible entities had arrangements to monitor outsourced service providers.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
