Feedback from regulators across the EU has found that some fund managersโ€™ compliance and internal audit functions could be sidelined, under-resourced, and lack independence. Authorities also found that there could be โ€œsignificantโ€ differences in the quality of these control functions depending on the size of the organization and the jurisdiction it may be based in.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...