AIMA Publishes Updated Guide for Fund Directors

The Alternative Investment Management Association ("AIMA") published an updated Fund Directors' Guide (the "Guide").

The Guide, last published in 2008, takes account of regulatory and tax reforms since the financial crisis. These reforms include the Alternative Investment Fund Managers Directive ("AIFMD") and FATCA which amended the roles and responsibilities of fund directors and boards.

According to the AIMA, the Guide is designed to be used by investment managers, fund promoters, and existing and prospective fund directors. The updated Guide includes new sections that cover:

• the general approach to fund governance, the monitoring of trading practices and business continuity planning;
• practical, legal and tax considerations when considering the selection and appointment of fund directors;
• the basic tasks that should be carried out by fund directors;
• issues relating to the ways in which fund directors manage their relationships with funds' service providers; and
• the impact of taxation on a fund, its service providers and its directors.

Additionally, the updated Guide contains guidance on several issues, including the review of annual audited accounts and issues relating to directors' and officers' liability insurance.

Although the updated Fund Directors' Guide is available to AIMA members only, an executive summary is accessible to the public.