UK independents: deadline time

The UK’s 200 authorised fund managers (AFMs) must have their independent directors appointed by the end of September. All the AFMs contacted by The NED said that they have made their appointments but some also added that these appointments have not yet been approved by the FCA. This confirms what many people have known for sometime: many AFMs left their independent director selections very late.

The NED does not know of an AFM that has gone beyond the minimum requirement of appointing two independent, non-executive directors to their board. (Although it understands that one or two might do this in the future.)

There is nothing to stop AFMs appointing three or four independents to their boards, should they wish to do so. The FCA just requires 25% of the board directors to be independent, with a minimum of two of these from outside the outside the organisation. Not one that The NED knows has exceeded this minimum requirement, at least yet.

To read more on this story see the September issue of The NED.