Corporate Governance and (Self-) Regulation- An Investment Fund Perspective

Armin Kammel, Head of Legal & International Affairs, The Association of Austrian Investment Companies (VÖIG), Austria

As a result of the global financial turmoil, calls for regulation of financial services enjoy a strong political tailwind. Aside from that, the last years have shown that self-regulation is of increasing importance in terms of complex financial market issues. This contribution reflects the issue of financial regulation and thereby describes the self-regulatory efforts of the investment fund industry. This industry has always been at the forefront of these developments acknowledging that as economic theory and in particular the principal-agent relationship indicate that state regulation is mostly reactive than pro-active. Against this background, the paper reflects the status quo of self-regulatory efforts of the European investment fund industry and attempts an outlook on how a successful future symbiosis of government regulation and self-regulation could look like.

The Association of Austrian Investment Companies (Vereinigung Österreichischer Investmentgesellschaften, VÖIG) was founded on 20 January 1988, and is an umbrella organisation for all Austrian investment fund management companies and all Austrian real estate investment fund management companies. VÖIG represents 100% of the fund assets managed by the Austrian investment fund management companies and real estate investment fund management companies. The purpose and the duty of this Association, which is organised under the law of associations, are to promote the investment industry in Austria and to provide comprehensive support to the Association's members. VÖIG participates in the evaluation of national and international (primarily European) rules that affect the interests of its members. VÖIG is in permanent contact with ministries, authorities and the Austrian Federal Economic Chamber (WKO) and exchanges information with national and international organizations and associations. VÖIG is also a member of the European Fund and Asset Management Association (EFAMA), and the International Investment Fund Association (IIFA).