The Guernsey Investment Funds Association (GIFA), in tandem with legal specialist Thorndon, has launched a new service to help protect the non-executive directors (NEDs) of investment funds and their management companies from risks.
The Financial Protection and Advice Service (FPAS) for GIFA has been designed by Guernsey-based Thorndon, which includes legal and insurance professionals experienced in managing process risk for fund directors and boards.
Thorndon Director Jonathan Bates said: “Fund boards and individual non-executive directors have enormous responsibilities in the pursuit of investors’ interests, yet little support mechanism around them should they find themselves exposed to the risks faced in their role, such as litigation and regulatory enforcement.”
Thorndon will provide advice and support to NEDs and their boards in relation to indemnity arrangements, insurance and the management of risk.
The service will help the boards of investment fund and management companies to be proactive in loss prevention by being better informed when reviewing and procuring insurance and maintaining adequate contractual, indemnity and risk management processes.
Thorndon has worked alongside the GIFA NED committee over the past year to tailor the service to the Guernsey funds sector. FPAS will work in collaboration with the wider legal and risk management and fund administrator community.
Pictured: Thornden's Jonathan Bates (left) with Paul Smith, Chair of GIFA