Forum News Feed

December 8, 2022

SEC Chair Gary Gensler delivered a speech to attendees at the Compliance Outreach Program of the Commission’s Investment Adviser/Investment Company National Seminar that touched on the role Chief Compliance Officers (CCOs) play in safeguarding shareholder interests. Gensler’s speech touched briefly on the recent implementation of the derivatives and valuation final rules, when he emphasized “how important segregation of duties are, particularly as relates to derivatives and valuations.”

December 7, 2022

Join the Mutual Fund Directors Forum and Deloitte on Thursday, December 8 at 2pm ET for a webinar entitled, “Investment Valuation and Governance: Deloitte's 20th Annual Fair Valuation Pricing Survey.”

December 6, 2022

According to the release, these included 462 "stand alone" enforcement actions; 129 actions against issuers who were allegedly delinquent in making required filings; and 169 "follow-on" administrative proceedings seeking to suspend individuals from certain functions in the securities markets. Actions focused on issuer disclosures, market manipulation, investor protection, crypto assets, ESG, and cybersecurity.

December 5, 2022

The Senate Banking Committee heard testimony from heads of financial regulatory agencies including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, as well as the Vice Chair for Supervision at the Federal Reserve, Michael Barr. The hearing covered a variety of issues mostly related to the banking sector including fees and challenges experienced by certain groups trying to gain access to the banking system. Additionally, the hearing touched on risk in the financial system, digital assets, and cybersecurity.

December 1, 2022

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.”

November 30, 2022

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.

November 29, 2022

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.

November 28, 2022

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.

November 23, 2022

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.

November 22, 2022

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.

November 21, 2022

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.

November 17, 2022

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.

November 16, 2022

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.

November 15, 2022

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.

November 14, 2022

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.”

November 10, 2022

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.

November 9, 2022

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.

November 8, 2022

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.

November 7, 2022

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.

November 3, 2022

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.