The Corporate Governance Code aims to formalise and codify existing best practice within the jurisdiction and, while it is voluntary, the GFIA said use of the code and the general guidance within it is “strongly recommended” by collective investment schemes (CIS) and their directors.
In a statement the GFIA said: “By codifying best practice the code provides a practical roadmap for implementing strong and effective corporate governance for investment funds today.”
Unveiled at a conference earlier this month, the code is primarily aimed at the corporate governance of Gibraltar CISs. The GFIA said the International Organisation of Securities Commission describes the corporate governance of such schemes as a “framework for the organisation and operation of CIS that seeks to ensure that CIS are organised and operated efficiently and exclusively in the interest of their investors, and not in the interest of CIS insiders”.
The GIFA said local regulator, the Gibraltar Financial Services Commission, considers the role of CIS directors to be of the “utmost importance and endorses the adoption” of the code by directors.
The Association added that the board is the focal point of the governance regime for the scheme and the onus lies with the board to ensure compliance if it chooses to adopt the code.
The introduction of the code follows the publication of a guide to the jurisdiction by GFIA in March. The guide is aimed at both an EU and international audience and provides an outline of Gibraltar and the local fund industry, giving examples of the various fund structures available, as well as taxation and regulation.
