Ocorian: Alternative fund managers step up focus on governance

13 augustus 2024

Wet- en regelgeving ESG

New research from market leading regulatory and compliance experts Bovill Newgate in partnership with Ocorian, market leader in services for funds, corporates, capital markets and private clients, reveals that despite saying they take governance extremely seriously and have the right skills at the most senior level, a raft of fines and sanctions in the last two years and other contributing factors is driving alternative fund managers to significantly step up their focus on governance over the next 24 months.

Almost all (99%) senior leaders and senior compliance and risk executives surveyed at alternative fund manager firms which collectively manage around US$132.25 billion AUM, say the board and senior management at their firm already take governance seriously – with 54% saying they take it very seriously. Almost all (93%) say the board and senior management already have the required blend of skills to conduct its duties correctly and have effective roles in place to manage and mitigate governance risks.

However, the international study by Bovill Newgate and Ocorian, reveals that despite this more than two thirds (65%) have been subject to governance related fines or sanctions in the last two years. A further 12% have received an information request or visit from the regulator in the last two years.

While 70% say their organisation has already increased its focus on governance during the past two years, a number of contributing factors including the numbers of governance related fines and sanctions has led to more than nine in ten (90%) saying that they see the focus their organisation places on governance increasing over the next 24 months. Of these, almost a third (30%) say this will increase dramatically.

There are many ways in which this increase in focus can be achieved but of those surveyed, almost all (96%) say it’s important for their organisation to use an independent specialist risk and compliance company. Over half (55%) say it’s very important and only 4% say it’s not important.