IRCs are currently unique to the investment fund business in Canada, as other countries have dealt with the inherent conflict of interest involved in running public investment funds in different ways.
For example, in the United States of America, mutual funds have been required to have independent directors ever since 1935.
In Canada, a securities regulation called National Instrument 81-107 Independent Review Committees for Investment Funds (the Instrument) requires every public investment fund to have a fully independent body, called an Independent Review Committee, whose role is to oversee all decisions involving an actual or perceived conflict of interest faced by the fund manager in the operation of the fund.
In 1999, a debate over the need for independent boards for mutual funds and increased regulatory standards for fund managers caused the Canadian Securities Administrators to suggest Stephen Erlichman make specific improvement recommendations.
After public consultation, the CSA published the Instrument in final form on July 28, 2006[2] and it came into force in 2007.