Read our article in the Cayman Financial Review Magazine, eversion 

 Sidebar:
The Directors’ Education and Accreditation Programme
 

Any Cayman Islands based director of an investment vehicle will have witnessed an increased activism by investors. This is of course driven by the Madoff effect and the financial crisis generally. Stakeholders are requiring advisors, fiduciaries and board members to exhibit and maintain high professional and ethical standards of care, diligence, competence and fairness in the stewardship of resources and assets entrusted to them, especially with regards to the custody/existence and valuation of assets.

This of course has a knock-on effect to the service providers in the discharge of their duties and the role of the independent director to ensure that the service providers undertake the activities delegated to them. In particular there has been increased requests to the Cayman Islands Director’s Association’s (CIDA) member directors by investors conducting due diligence. These days, it is not uncommon for investors to perform background checks on the fund’s directors and engage in on-site due diligence of independent directors.

The demands placed on Cayman Islands directors by investors is not new to the experienced professionals who act as directors but what is new is the increase in the number of requests the directors are receiving. With registered mutual funds at or around all time highs in the Cayman Islands, there continues to be a demand for competent and experienced independent Cayman Islands directors. It is fair to say that since the inception of the Mutual Funds Law in 1993 the role of the directors has expanded both in terms of actual duties as well as the expectations of a director’s awareness of sector specific corporate governance and best practices. This of course has been met by experienced professionals moving from the likes of the Monetary Authority and administrators, who have considerable operational experience, to act as directors on investment vehicles. The Cayman Islands are somewhat unique in that we have a profession of being a full-time director.

CIDA was established in 2008 in recognition of the importance of the role of an independent director and the number of professionals involved with the provision of the fiduciary services in the Cayman Islands. CIDA currently has over 165 members who must be resident in the Cayman Islands and are directors of one or more Cayman Islands registered companies.

Although the majority of the members of CIDA focus on providing corporate governance to hedge funds, CIDA is comprised of all sectors of the fiduciary services industries, from family companies to large financial service providers and it can rightfully claim to be the de facto voice of the director in the Cayman Islands. Furthermore, CIDA is committed to furthering the education and standard of directors in the Cayman Islands. In furtherance of its aims, CIDA has already issued a Code of Conduct for CIDA members, which is based, with permission, on the Institute of Directors’ Code of Conduct in the UK.

CIDA has brought the Directors' Education and Accreditation Programme back to the Cayman Islands for a second year, in conjunction with the Institute of Chartered Secretaries and Administrators in Canada to offer members of CIDA the opportunity to take the ICSA’s Directors' Education and Accreditation Programme to become an accredited director. The ICSA's director's accreditation programme provides a valuable update and focuses on recent trends and requirements for good governance, risk management, strategy and financial management for existing and aspiring directors.

The recent ICSA director’s education and accreditation programme was held in Grand Cayman on 24 to 26 May at the Westin Hotel and was attended by 21 resident directors. The attendees had the benefit of two renowned presenters from ICSA in Canada over the three days. CIDA has received positive feedback on the course from the attendees, who also had to sit a series of examinations during the course of the programme. The main topics included the governance and critical analytic skills that may be relevant to any board of directors. If successful in their examinations, the attendees will be awarded Accredited Director designation.

The Accredited Director designation recognises the member’s commitment to professionalism and excellence in the discharge of his or her duties as a director. The successful candidates are entitled to carry the letters ‘Acc.Dir’ after their name. It is hoped that the attendees will be as successful as the 2010 course, where 23 members of CIDA successfully passed the ICSA exams and gained the ‘Acc.Dir’ designation.

The Directors' Education and Accreditation Programme is aimed at both experienced and newly appointed directors and is designed for busy people, who were able to receive the critical content in an intensive fashion. The programme featured a mix of presentations, discussions and case studies with an exam after each of the modules.

The programme offered CIDA’s members a great opportunity to refresh their skill set and at the same time gain exposure to the types of issues that may not normally arise on the boards to which they serve.

CIDA has developed an excellent working relationship with ICSA and the aims of ICSA are aligned with CIDA, in that they have at the forefront of their agenda to lead and shape governance whilst promoting the best practice essential for organisational performance. Further ICSA state that they are committed to strengthening and advancing good governance procedures and the efficient administration of every type of organisation in business and government. CIDA and ICSA understand that good governance is fundamental to good business decision-making and organisational performance. ICSA now has a worldwide membership of 45,000 plus 28,000 students in over 70 countries, working to ensure the smooth functioning and best practice in corporate governance and business management.

CIDA are confident in their choice of partner in running the programme and Paul Harris the president of CIDA commented that "CIDA are proud to be associated with ICSA and we are pleased to bring the Accredited Directors course back to the Cayman Islands. This only goes to demonstrate how seriously CIDA considers the continued education of directors in the Cayman Islands regardless of their experience. We are pleased both by the quality of the attendees and the lecturers provided by ICSA, and if these participants are successful then we will have additional Accredited Directors in the Cayman Islands. This underlines, what all informed professionals already know about the Cayman Islands, that we are and always have been serious about our fiduciary obligations."