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FCA made a rule that funds need independent directors, but it’s not keeping track

The regulator has taken a tough line on value statements but has seemingly failed to police rules on director independence

The FCA mandated that fund managers appoint a minimum of two independent directors, and for them to comprise at least 25% of the total board membership
The FCA mandated that fund managers appoint a minimum of two independent directors, and for them to comprise at least 25% of the total board membership Photo: Getty Images

The Financial Conduct Authority does not know how many fund managers are meeting requirements around the number of independent directors on their boards.

The regulator discussed the requirement in more than two dozen meetings with industry figures over the last two years.

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