Credit: ILA

Luxembourg’s directors’ institute (Institut Luxembourgeois des Administrateurs – ILA) has announced the first edition of the recently established Fund Governance Masterclass, a sectoral qualification providing fund industry boards with the latest global best practice in this domain, taking place from 3 to 7 October 2022 and 30 January to 3 February 2023 is fully subscribed.

According to the ILA, the investment fund boards of directors are facing a growing range of complex challenges such as achieving financial returns via ever-more diverse investment strategies and funds must now meet investors’ desires for environmental and social responsibility. Additionally, regulators are now more active regarding the enforcement of evolving rules designed to protect the investor and combat financial crime, and highest standards are also demanded by clients, employees and staff, clarified ILA.

Topics covered in the ILA Masterclass includes: the particularities of funds for retail and institutional investors; the roles of the fund administrator, the auditor and distributors; approaches to anti-money laundering, ESG and other regulations; and an overview of strategic and technological challenges. These subjects will be covered in ten modules held over 80 hours, in which experienced governance professionals will share their expertise.

The course is open to ILA Certified Directors and those who have at least three years of experience in the funds industry, as a board member (executive or non-executive), a conducting officer or as executive manager. A Fund Governance Expert diploma will be awarded to those who successfully complete the course.

Yann Power, member of the ILA Fund Committee and co-creator of this course, said: “Directors bear a huge responsibility towards investors, and this programme is there to better enable directors to face up to that challenge.”

Henry Kelly, member of the ILA Fund Committee and co-creator of this course, said: “The simple aim is to work to ensure that fund directors’ expertise is as high as it can be, which is important given Luxembourg’s key role in the global fund industry.”

Michèle Eisenhuth, ILA Board Member and Fund Governance Masterclass Trainer, said: “In a rapidly changing environment, expectations for governance are rising continuously. The severity and frequency of sanctions imposed by the regulator are increasing. For non-regulated entities too, there is increased scrutiny of boards from shareholders, creditors, employees and business partners. Fund directors must be proactive in how they analyse and challenge information presented to them, as the risk of being criticised will continue to increase. This training course makes fund directors aware of the risks they face and what is expected of them. Most importantly, it gives practical guidance to directors to help them mitigate their liability risk.”

Marco Zwick, Director of Luxembourg’s Financial Sector Supervisory Commission (Commission de Surveillance du Secteur Financier - CSSF), said: “The CSSF congratulates ILA for putting in place the Fund Governance Masterclass. The various modules of this two weeks programme are all very appropriate and timely. Non-Executive and Independent Directors are key to ensure good governance so we welcome this programme for Directors of investment funds and investment fund managers.”

ILA is preparing a second programme which will be held during 2023.

Further information on ILA Fund Governance Masterclass course is available online via: https://www.ila.lu/blog/1/post/fund-governance-masterclasses-and-certification-263.