Norshield Financial Group, which manages funds of hedge funds, says it has enhanced and formalized its corporate governance policy.

Norshield says the policy is intended to fulfill the rigorous demands of both the current and future business environment, and to exceed the expectations of its stakeholders and the broader investment community.

The company says the benefits for its clients include greater transparency and the ongoing monitoring of organizational and administrative controls, as well as the investment management and risk management processes within Norshield.

Although the fund of hedge funds industry is currently not subject to the same governance standards required of public corporations, Norshield says it is proactively instituting these standards as a part of its commitment to ensure that the highest ethical business practices are employed throughout the organization.

The formalized policy, which is based on the recommendations of a leading independent investment consulting firm from whom Norshield commissioned an extensive study, defines both the structure and role of its governance committee.

“As an active money manager, Norshield is always preparing for emerging scenarios. We are thus very much aware of investor sentiment regarding the need for a strong emphasis on corporate governance. Our corporate governance policy is our answer to this need amongst our clients and stakeholders,” said John Xanthoudakis, dhairman of the Norshield Financial Group, in a news release.

The responsibilities of Norshield’s corporate governance committee will include: overseeing the structure used to execute the company’s various activities; establishing the standards used to report results; and monitoring the different elements of Norshield’s operations.

Norshield says the majority of the committee will consist of independent members with considerable industry-related expertise. The committee will prepare and present an annual report on Norshield’s corporate governance practices, which will be provided to Norshield’s clients and stakeholders.