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Recent research has revealed that two-thirds of alternative fund managers have faced fines or sanctions over governance failures in the past two years. Despite the fact that nearly all senior leaders and compliance executives within these firms claim that governance is a serious priority, 65% have still been penalized, with an additional 12% receiving requests for information or visits from regulators.
Alternative fund managers, who invest in markets such as property, private equity, and infrastructure, are increasingly under pressure to strengthen their governance practices. In response to these penalties, 70% of managers have intensified their focus on governance over the past two years, with 90% anticipating further emphasis on governance due to the sanctions.
Paul Ford, head of regulatory and governance at Bovill Newgate, emphasized the importance of engaging independent specialists to navigate the complex regulatory landscape, advocating for a three-tiered defense approach involving robust procedures, continuous monitoring, and independent audits. This strategy aims to help alternative fund managers safeguard their operations in an ever-evolving regulatory environment.
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