Management is Responsible for Establishing the Control Environment

Ilya Alkhimov -

Explanation

Management is responsible for ensuring that throughout the GP organisation employees recognise and respond to the need for integrity and ethical behaviour in the GP’s own organisation and throughout the portfolio. A high standard of corporate governance sets the framework to meet this goal effectively.

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Recommendation

Management should identify, select and adopt an appropriate governance and control framework taking into account the size and complexity of the business and should communicate the key features of that framework, applying it consistently and effectively. In doing so, the GP needs to be fully aware of relevant regulatory requirements (including those established by the AIFMD, where that applies to the GP) which will dictate certain aspects of the control environment.