The 2019 AIC Code of Corporate Governance

The AIC Code of Corporate Governance (the AIC Code) sets out a framework of best practice in respect of the governance of investment companies.  It has been endorsed by the Financial Reporting Council (FRC) and the Guernsey Financial Services Commission (GFSC) and is supported by the Jersey Financial Services Commission (JFSC).  This means that AIC member companies may make a statement that, by reporting against the AIC Code, they are meeting their obligations under the UK Code / the 2011 GFSC Finance Sector Code of Corporate Governance and associated disclosure requirements under paragraph 9.8.6 of the Listing Rules.

The 2019 AIC Code applies to accounting periods beginning on or after 1 January 2019.

Additional background information can be found in the FRC’s publications:

• Guidance on Board Effectiveness published in July 2018.  This contains suggestions of good practice to support directors and their advisors in applying the UK Code, it is not tailored to investment companies, but boards may still find this useful; and
• Improving the Quality of ‘Comply or Explain’ Reporting published in February 2021.  This includes, for example, providing a clear rationale for the action taken and describing any mitigating actions.

Please note that:

1. Because the AIC Code closely reflects the Principles and Provisions of the UK Code, there is no longer a need for the AIC Corporate Governance Guide (the AIC Guide) which previously mapped the recommendations of the UK Code to the AIC Code.  The AIC Guide has been withdrawn; and
2. There is now just one AIC Code which covers UK, Guernsey and Jersey member companies.  The relevant endorsements/letter of support can be found in Section 2 of the AIC Code.