The role of ILA in promoting excellence in corporate governance in Luxembourg

SFF Magazine December 2024

Topics: Governance, Independent Director

ILA Role

ILA Mission: Elevate governance standards by connecting, educating and inspiring

ILA is an independent and member-driven institute that promotes the application of the highest internationally recognised governance practices in all sectors of the Luxembourg ecosystem. As Luxembourg multi-industry association, ILA is the voice of governance as well as an ambassador for Luxembourg as a strong business location for good governance. ILA plays a crucial role in defining and promoting conscious, good and sustainable governance in Luxembourg. To achieve this, ILA offers training and certification courses, produces studies on relevant topics and supports its members through networking activities, advocacy and access to relevant governance resources.

Key Activities :

Training programmes for Directors and Corporate Governance Professionals (by professionals)
Certification programmes for experienced executive and non-executive directors as well as CGOs
Mentoring & Coaching for Aspiring Directors & Corporate Governance Professionals
Networking platform and events for ILA members
Thought leadership and knowledge sharing: Publications, best practices, guides and articles
Public advocacy with local authorities on issues affecting ILA’s core audience
Luxembourg touch point for international governance networks

Competencies and training for the NED

NEDs play a key role in the proper functioning of a Board. Being external to the company and uninvolved in day-to-day management of the company’s affairs, NEDs bring a fresh perspective to solving and addressing strategic issues facing the company.

The importance of corporate governance and the wider roles and responsibilities of Boards and their Directors is acknowledged by market players such as regulators, business associations, companies — and of course, shareholders. To support this professionalization of Boards and the growing culture around maximizing each Board’s effectiveness, ILA continues to expand its learning and training paths for Directors:

“ILA is an independent and member-driven institute that promotes the application of the highest internationally recognised governance practices in all sectors of the Luxembourg ecosystem. As Luxembourg multi-industry association, ILA is the voice of governance as well as an ambassador for Luxembourg as a strong business location for good governance.”

Training for aspiring directors:

Aspiring Director Programme, ILA Bootcamp, Fundamental of Luxembourg Corportate Governance, ILA Mentoring Programme…

Certification of (experienced) Directors:

Essential Luxembourg & Essential Universal (= ILA Certified Director)

Specialization:

Funds Governance Masterclass

Technical skills training:

Legal & Compliance (e.g. AML for fund directors, The A-Z of Mergers & Acquisitions, The criminal and administrative sanctions regime, Termination of a director’s mandate – key practical points to consider)
Tax & Finance (e.g. ESG reporting obligations, Financial reporting obligations, Fiscal reporting obligations, Regulatory Reporting Obligations for Boards, Transfer pricing in Luxembourg : What directors have to know)
Sector specific (Funds & IFMs: Governance fundamentals, Portfolio management, Risk management, Fund Administration, Depositary and Valuation, AML/CFT: key considerations for the Fund industry, The role of the auditor, Marketing, distribution and transfer agency, Fund Governance in Practice, Forum for directors of Luxembourg Credit Institutions, Insurance Forum for Directors of (re)insurance undertakings, Practical governance for SME)
Transversal (Cyber security for Boards, Lifecycle of a Directors in an Alternative Investment Industry, Artificial Intelligence, a journey for directors: from Fundamentals to Risk Management & Ethics, Managing & Communicating company data, Luxembourg Corporate Governance & Company administration in practice)

Key issues in corporate governance continue to evolve as the business environment becomes increasingly complex. With ongoing changes and growing uncertainty, boards must be highly effective to fulfill their duties successfully. The responsibilities and expectations placed on them are escalating, making continuous training more crucial than ever.

Several external factors could significantly impact businesses, including technological shifts, geopolitical uncertainty, the macroeconomic environment, ESG (Environmental, Social, and Governance) considerations, and the regulatory landscape. Consequently, the mission of ILA is central to elevating governance standards.