Webinar Archive: Board's Responsibility of Derivatives

During this webinar, Ken Holston and Fatima Sulaiman,  partners in K&L Gates LLP’s Asset Management and Investment Funds Practice, discussed fund boards’ responsibilities under the new derivatives rule applicable to registered funds. The SEC recently adopted Rule 18f-4 under the 1940 Act, which establishes a comprehensive regulatory framework for the use of derivatives transactions by registered funds. The rule will replace SEC guidance and staff no-action letters that together have governed the use of derivatives by registered funds for over 40 years. Rule 18f-4’s conditions include specific board oversight and reporting requirements related to funds’ management of derivatives risks. The webinar covered the following topics:

  • Overview of the new Derivatives Rule,
  • Approving a Derivatives Risk Manager,
  • Understanding the Derivatives Risk Management Program,
  • Defining the Board’s Oversight Role,
  • What to Expect in Board Reporting, and
  • Board Obligations When Funds Fall Out of Compliance
This webinar originally aired on Thursday, January 14, 2021.

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