Forum News Feed

The Forum News Feed is an electronic journal, or "blog," of alerts, analysis, news and tools focused on the needs of independent directors. Click here to subscribe to the Forum News Feed and have it delivered electronically to your e-mail inbox. 

 

  • December 1, 2022

    Nasdaq Article Discusses How to Emphasize the ‘G’ in ESG as a Board Member

    An article published by Nasdaq titled, “Crafting the ‘G’ in ESG: Accountability in the Boardroom” considers the dynamic topic of ESG and strategies for boards to meet the ESG expectations of their stakeholders. The article emphasizes “[o]ver time, diverse boards will have more robust debates, make sounder decisions, understand customers better and attract higher performing employees.”

    Learn more
  • November 30, 2022

    ACA Releases November Regulatory Update

    The report covers the SEC’s crackdown on use of unmonitored messaging apps, the approaching annual renewal cycle for registered investment advisers, and the SEC’s latest rule proposal addressing due diligence on service providers, among other topics. It also contains references to additional programs and reports, as well as a checklist of upcoming regulatory deadlines.

    Learn more
  • November 29, 2022

    Report Highlights How Boards Can Enhance Culture and Effectiveness

    A Sidley Austin attorney shares ways for directors to increase their effectiveness by establishing norms around director behavior. The article sets forth certain behaviors that individual directors can practice in order to improve trust and respect.

    Learn more
  • November 28, 2022

    K&L Gates to Host Webinar on Disclosure Modernization

    K&L Gates plans to host a webinar covering the SEC’s final rule on tailored shareholder reports. The adopted final rule changes (1) shareholder report content and delivery requirements for mutual funds and exchange-traded funds registered on Form N-1A; and (2) advertising rules for all registered investment companies, including closed-end funds and business development companies.

    Learn more
  • November 23, 2022

    SEC Issues FAQ Regarding Adviser Consideration of DEI Factors

    SEC staff published guidance as an FAQ confirming that, consistent with its fiduciary duty and subject to certain conditions, an investment adviser can incorporate DEI factors when recommending or selecting an investment adviser for its clients. While the guidance does not expressly reference registered funds, according to a Ropes & Gray alert the guidance appears to apply to recommendations involving sub-adviser selection for registered funds that operate in a manager-of-managers structure.

    Learn more
  • November 22, 2022

    McKinsey Study Looks at Diversity in Private Markets

    This report provides insights into three main areas: how institutional investors evaluate diversity on investing teams; a preference toward more diverse teams when allocating capital; and an analysis on diversity for PE investing teams in terms of gender. The study found institutional investors are increasingly asking for and receiving diversity data from PE firms seeking to raise funds.

    Learn more
  • November 21, 2022

    SEC Adopts Final Rule on Enhanced Proxy Voting Disclosure

    The SEC announced a final rule requiring amendments to Form N-PX that will “enhance the information mutual funds, exchange-traded funds, and certain other registered funds report about their proxy votes.” The final rule is meant to address fund securities lending activity and the impact of lending shares (and whether or not to recall them) on proxy voting.

    Learn more
  • November 17, 2022

    Ropes & Gray Releases Quarterly Crypto Update

    Ropes & Gray published a report covering recent litigation, regulatory, and legislative updates in the crypto space including sections dedicated to SEC enforcement actions and bankruptcy proceedings.

    Learn more
  • November 16, 2022

    SEC Releases Rule Proposal on Third-Party Service Provider Oversight

    The SEC released a rule proposal that would require advisers to satisfy specific due diligence elements before retaining a service provider that will perform certain advisory services or functions, and to subsequently carry out periodic monitoring of the service provider’s performance.

    Learn more
  • November 15, 2022

    MFDF Webinar: Mutual Fund CCO Compensation

    The Forum will host a webinar entitled, “Mutual Fund CCO Compensation: The MPI Annual Survey Update" which details aggregate compensation data received through confidential questionnaires from fund CCOs and other industry executives.

    Learn more
  • November 14, 2022

    SEC Adopts Final Rule on Streamlined Shareholder Reports

    The SEC unanimously adopted a final rule on shareholder reports for open-end mutual funds and ETFs registered on Form N-1A, as well as amendments requiring fee comparability in fund advertising for all registered investment companies, including closed-end funds and BDCs. In a statement supporting the final rule, Chair Gensler noted the amendments would, “help investors better understand fund disclosures and help ensure that the information investors receive in investment company advertisements is transparent and balanced.”

    Learn more
  • November 10, 2022

    Event of Interest: Deloitte to Host Mutual Fund Directors’ Exchange Roundtable

    Deloitte plans to host a virtual roundtable titled “The Mutual Fund Directors’ Exchange.” The program will focus on ESG impacts on the fund industry, board oversight, risk management, developments in board governance, and implementation of the SEC's Fair Valuation rule.

    Learn more
  • November 9, 2022

    Gensler Delivers Remarks on Competition at SIFMA’s Annual Meeting

    In recent remarks, SEC Chair Gary Gensler noted the important role competition plays in financial markets. Gensler highlighted several areas the SEC is focused on regarding competition: fixed income, equity markets, and private markets.

    Learn more
  • November 8, 2022

    Event of Interest: K&L Gates to Host Webinar Series Covering Digital Assets

    K&L Gates plans to host the first in a three-part webinar series entitled “Decoding Digital Assets: Blockchain, Crypto, and NFTs.” The first webinar installment will focus on blockchain technology, uses cases, risks, and response to common questions.

    Learn more
  • November 7, 2022

    SEC Proposes New Rules for Open-End Funds

    The SEC proposed new rules governing liquidity of open-end funds, including mandating swing pricing for most open-end funds (excluding money market funds and ETFs) by a vote of 3 to 2. The proposal would also change how funds classify the liquidity of their investments, institute a “hard close” on fund transactions, and require more detailed public reporting of a fund’s liquidity more frequently.

    Learn more
  • November 3, 2022

    FSOC Meets to Discuss Digital Assets, Climate Risk Committee

    FSOC met at the beginning of October to approve the Council’s “Report on Digital Asset Financial Stability Risks and Regulation” as well as approve the recently created Climate-Related Financial Risk Advisory Committee (CFRAC) and appoint the founding members.

    Learn more
  • November 2, 2022

    MFDF Webinar Tomorrow: What to Expect When the SEC Calls

    Willkie Farr & Gallagher partners will discuss what fund boards should know about the SEC’s examination and enforcement processes.

    Learn more
  • November 1, 2022

    McKinsey Analysts Break Down the Fundamentals of Web3

    In an article from McKinsey & Co., the author details the rise of Web3 including a primer on what it is, how it is built, what it can and cannot do, the risks, and implications for stakeholders. One interesting adoption of Web3 technology is in the financial services space. The article highlights that when assets sit on the blockchain, instead of going to a depository institution where it is then loaned to borrowers, a smart contract can be employed to lend the users assets from the blockchain once certain, defined criteria are met.

    Learn more
  • October 31, 2022

    SEC Proposes Rules on Treasury Market Structure

    The SEC proposed new rules for Treasury market clearinghouses in response to volatility in the Treasury markets during March 2020, as well as other volatile points in 2019 and 2014. The proposed rules would require clearinghouse members to push client trades, often those of other dealers, hedge funds, and principal trading firms through the clearinghouse.

    Learn more
  • October 27, 2022

    Senate Banking Committee Hears Testimony from Chair Gensler

    SEC Chair Gary Gensler testified in front of the Senate Banking Committee covering issues such as digital assets, ESG, China-based entities, and market structure generally. On ESG disclosure, Gensler stated the SEC is focused on increasing transparency and disclosures related to investor decision-making. Gensler added, “climate-related factors and risks as well as cybersecurity risks both can affect a company’s bottom line and its future, and therefore an investor’s decision to buy, hold or sell a security or how to vote a proxy.”

    Learn more