Keeping in touch with Carne: find out what is happening around the funds industry and get the latest updates from the experts.

The Carne Hedge Fund Governance Series – Issue 5: Operational Functions of Fund Boards


This is the fifth issue in the Carne Hedge Fund Governance Series and examines some of the critical operational functions that should be overseen by fund directors.

Following the Weavering Case and general calls for better corporate governance standards as a result of the financial crisis, the Cayman Islands Monetary Authority (‘CIMA’) published a Statement of Guidance (SOG) on 13 January 2014, setting out the minimum governance standards for directors of funds registered with CIMA.

The SOG sets out the key corporate governance principles for both the “Governing Body” and “Operator” of a Regulated Mutual Fund. The terms “Governing Body” and “Operator” are synonymous with the board of directors of a company, the general partner for a limited partnership or the trustees of a unit trust.  The SOG is intended to be in line with international governance practices as well as codifying common law principles, including many of those set out in the Weavering case.

Fund governance best practice calls for hedge fund directors to take a proactive role in overseeing critical areas such as middle office functions, broker/bank account opening and closing, cash and security reconciliations, control over fund payments, cross trades management, oversight of delegates, side letter control and valuations and securities pricing. This briefing also includes a discussion of the operational policy documentation funds may be expected to have in place. Read More…

Carne receives approval for new AIFM Manco in the Channel Islands

AIFMD-compliant Management Company now available for alternative investment managers, including private equity and real estate funds.

Carne Group, one of the leading providers of governance and AIFMD solutions to the alternative investment industry, has received authorisation for an independent AIFMD-compliant management company in the Channel Islands. The new management company has become immediately operational with Carne Group’s fund clients. It is particularly suitable for alternative fund managers, including credit, hedge fund, private equity, infrastructure and real estate investment firms.

Carne has received authorisation as a fund services business from the Jersey regulator, the Jersey Financial Services Commission (JFSC). Read More…

Carne launches new edition of UCITS Guide for fund managers

Latest version of popular guide provides information for both long only and alternative managers.

Carne has published a new edition of its popular UCITS Guide for Investment Managers. The A5 booklet has proved popular with product development teams seeking practical guidance on distributing funds under the UCITS IV Directive.

The new edition of the guide has been updated by Carne’s team of regulatory experts to include the latest changes to European funds legislation and now addresses the information needs of both alternative and long only fund managers.

Said John Donohoe, CEO of Carne Goup: “Carne continues to work with many of the leading names in asset management, helping them to meet their regulatory and substance requirements under the UCITS Directive. We have found that our UCITS Guide has proved particularly popular, as a handy-sized reference digest of the critical information product developers need to be aware of when launching UCITS funds.” Read More…

New Carne office in Channel Islands to provide governance for Jersey and Guernsey funds

Mark Hodgson joins Carne’s leading team of independent fund directors to provide oversight for Channel Islands funds, including private equity, infrastructure and real estate.

Carne Group, the leading global provider of governance and oversight services for asset managers, has opened a new office in the Channel Islands. Joining Carne as Managing Director responsible for the Channel Islands is Mark Hodgson, who will be available immediately to serve as an independent director on Jersey and Guernsey fund boards. Read More…

Carne offers plug and play AIFMD solutions for US managers

The introduction of the Alternative Investment Fund Managers Directive (AIFMD) has significantly changed the way US managers of alternative funds are able to market their funds in Europe.  As with UCITS, the Directive provides fund managers with the opportunity to passport their funds in Europe under a regulated brand which investors will respect and which paves the way for the creation of a new market in cross-border alternative funds.

For US fund managers with Cayman funds, options for now (at least until July 2015) are limited to private placements or reverse solicitation, each of which carries its own set of unique risks, limitations, and complexity.

For managers interested in more broadly accessing European-based capital with either an Irish or Luxembourg domiciled fund, Carne offers several solutions tailored to meet a US manager’s immediate and long term AIFMD needs. Read More…

Cayman Islands Directors Registration and Licensing Law 2014

Effective 4 June 2014, the Cayman Islands government has approved the Directors Registration and Licensing Law, 2014 (the “Law”), which requires all directors of mutual funds regulated under the Mutual Funds Law (2013 Revision) and directors of companies registered as ‘excluded persons’ under the Securities and Investment Business Law (2011 Revision) (“Covered Entities”) to register with the Cayman Islands Monetary Authority (“CIMA”) within three months. (Corporate directors have 6 months to be licensed.) Non-compliance with the Law carries with it significant financial penalties and in some cases, imprisonment. Read More…

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