Independent directors seen as crucial for hedge fund corporate governance

The financial crisis highlighted the need for independent directors for hedge funds. Different models to provide directors are being tested as regulators consider tighter rules.

Of all the services associated with hedge funds, the provision of independent directors is one of the most diverse and informally structured.

This is set to change as investors and managers recognise the growing importance of independent directors to the smooth running of a fund. Over the last few years this sector of the funds industry has become essential, sparking a slow evolution in the way directors work and interact with managers and investors into their funds.

Many directors say day-to-day