Fund governance

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Fund governance refers to a system of checks and balances and work performed by the governing body (board) of an investment fund to ensure that the fund is operated not only in accordance with law, but also in the best interests of the fund and its investors.[1] The objective of fund governance is to uphold the regulatory principles commonly known as the four pillars of investor protection that are typically promulgated through the investment fund regulation applicable in the jurisdiction of the fund.[2] These principles vary by jurisdiction and in the US, the 1940 Act generally ensure that: (i) The investment fund will be managed in accordance with the fund's investment objectives, (ii) The assets of the investment fund will be kept safe, (iii) When investors redeem they will get their pro rata share of the investment fund's assets, (iv) The investment fund will be managed for the benefit of the fund's shareholders and not its service providers.[3]

  1. ^ "Investment Company Governance". U.S. Securities and Exchange Commission. 16 January 2006. Retrieved 16 July 2015.
  2. ^ Cite error: The named reference Shadab was invoked but never defined (see the help page).
  3. ^ "Maintaining the Pillars of Protection in the New Millennium". U.S. Securities and Exchange Commission. 21 May 1999. Retrieved 15 July 2015.