Dear board member: do you really know your fund?


Our Governance radar assists directors in determining whether or not the level of information received on the fund for which they are acting, prior to and during the board meeting, is sufficient in view of the fund’s complexity.



Challenging your board pack via a quick and easy self-assessment


The tool takes the form of a user-friendly questionnaire. The director will as a first step respond to questions (answered by yes, no, or I don’t know) that will determine how he sees the complexity of the fund’s environment. It will depend on a series of diverse factors such as e.g. the sophistication of the product, the number of distribution countries or the extent of delegation outside of the group. The tool will then rank the environment in five categories, ranging from “very simple” to “very complex”. As a second step, the director will respond to questions around four key topics to tackle as board member: “Distribution and investors relations”, “Products”, “Asset management and Administration” and “Control environment”.
The combination of the fund environment’s level of complexity, on the one hand side and of the director’s information on each of these four topics, on the other hand, will determine whether the director is sufficiently informed and hence able to manage its risks properly or not.



Now it’s your turn : take the test for one of your funds !


Answering a sample of questions taken from the Governance Radar will give you a quick overview of where you stand in terms of information (or lack thereof), here on the topic “Distribution and Investors relations”.

Complexity of the fund’s environment

Q1. There is no non FATF equivalent country within the Fund's countries of distribution

Q2. The Fund/any of its Sub-funds is privately placed in some jurisdictions

Q3. The Fund/any of its Sub-funds is distributed in more than 7 jurisdictions

Q4. The Fund/any of its Sub-funds is distributed in non-EU countries

Q5. The Fund's register shows mainly nominee position of distributors

Q6. The ManCo/Fund has current distribution agreement with all its distributors

Q7. The ManCo/Fund makes use of a single global distributor

Q8. The Fund's register shows a high number of direct retail investors

Q9. The Fund/any of its Sub-funds is distributed in countries with specific tax reporting requirements such as UK, Germany, Belgium, Switzerland, Austria

Q10. The Fund's/any of its Sub-funds share classes are reserved to certain type of investors

Distribution and Investors relations

Q1. The Board receives confirmation that checks are effected to ensure KIID are communicated to investors

Q2. The Board receives regular feedback on client complaints

Q3. The Board has received and has validated the AML risk analysis

Q4. The Board receives regular feedback on any AML/KYC issue to act upon

Q5. The Board receives confirmation that the marketing material is regularly reviewed to ensure compliance with local laws

Q6. The Board receives regular reporting to confirm the status of new investors (professional/retail)

Q7. The Board takes actions in relation of clients complaints which may result in significant indemnification

Q8. The Board receives information on where the Fund/any of its Sub-funds is effectively marketed (i.e. review of register positions)

Q9. The Board receives information on where the Fund/any of its Sub-funds is publicly marketed

Q10. The Board receives confirmation that the Fund/any of its Sub-funds has been properly registered for distribution in the targeted countries

Q11. The Board receives information on countries where the Fund/any of its Sub-funds is privately placed

Q12. The Board receives regular confirmation that the product disclosure is fair, clear and not misleading


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If you would like to perform a full assessment on the four complete topics :

  1. “Distribution and Investors relations”
  2. “Products”
  3. “Asset management & administration”
  4. “Control environment”

our experts at Arendt Regulatory Solutions stand by your side to screen your directorships using the Governance Radar, to discuss any of its results and to advise on possible actions.




The responses given herein are only for information purposes, and are based on our current understanding of fund governance. It is not intended to be, and should not be relied upon, as legal or other kind of business advice.