(1) At least annually, the independent review committee must review and assess the adequacy and effectiveness of
(2) At least annually, the independent review committee must review and assess
(a) the independence of its members; and
(b) the compensation of its members.
(3) At least annually, the independent review committee must review and assess its effectiveness as a committee, as well as the effectiveness and contribution of each of its members.
(4) The review by the independent review committee required under subsection (3) must include a consideration of
(b) the competencies and knowledge each member is expected to bring to the independent review committee;
(c) the level of complexity of the issues reasonably expected to be raised by members in connection with the matters under review by the independent review committee; and
(d) the ability of each member to contribute the necessary time required to serve effectively on the independent review committee.
1. Section 4.2 sets out the minimum assessments the independent review committee must perform. Subject to these requirements, the IRC may establish a process for (and determine the frequency of) additional assessments as it sees fit.
2. The annual self-assessment by the IRC should improve performance by strengthening each member’s understanding of his or her role and fostering better communication and greater cohesiveness among members.
3. When evaluating individual performance, it is expected that the IRC consider factors such as the member’s attendance and participation in meetings, continuing education activities and industry knowledge. The manager may also provide IRC members with feedback which the IRC may consider.
It is expected the self-assessment should focus on both substantive and procedural aspects of the IRC’s operations. When evaluating the IRC’s structure and effectiveness, the IRC should consider factors such as the following:
- the frequency of meetings;
- the substance of meeting agendas;
- the policies and procedures that the manager has established to refer matters to the IRC;
- the usefulness of the materials provided to the members of the IRC;
- the collective experience and background of the members of the IRC;
- the number of funds the IRC oversees; and
- the amount and form of compensation the members receive from an individual investment fund and in aggregate from the fund family.
- The CSA expect the members of an IRC to respond appropriately to address any weaknesses found in a self-assessment. For example, it may be necessary to improve the IRC members’ continuing education, recommend ways to improve the quality and sufficiency of the information provided to them, or recommend to the manager decreasing the number of investment funds under the IRC’s oversight.