(Reuters) – Britain’s financial markets watchdog is reviewing the effectiveness of so-called host authorized corporate directors (ACDs) after the collapse of British money manager Neil Woodford’s 3 billion pound ($3.9 billion) equity income fund.
“We have begun a review of the effectiveness of fund governance standards at firms that act as so-called ‘Host Authorized Corporate Directors’ for asset managers,” the Financial Conduct Authority (FCA) said in a statement on Saturday.
ACDs are meant to ensure fund managers stick to their investment mandates and follow the rules.
($1 = 0.7658 pounds)
(Reporting by Kanishka Singh in Bengaluru; Editing by Alexander Smith)