1. One of the independent directors of a fund management company, which could be the Chair if he or she is independent, should undertake an organisational effectiveness role. The purpose of this role is to ensure that there is an independent director within the fund management company who has the specific task of keeping the effectiveness of the organisational arrangements of the company under ongoing review, with his or her reports being submitted to the board for discussion and decision.

2. The independent director who undertakes this task will be on alert for organisational issues and will escalate these to the board. They will be change leaders who bring proposals to improve effectiveness to the board. They will champion these proposals and will drive through the change agenda to ensure that agreed actions are implemented.

3. Having a person with responsibility for reviewing organisational effectiveness should ensure that a fund management company does not continue to adhere to agreed organisational arrangements when these are no longer appropriate because, for example, the fund management company has grown and developed, because market practice has moved on or because one of the arrangements suffers from an unanticipated conflict of interests.