After FS Credit: What Fund Boards Need to Know About the Supreme Court's Section 47(b) Ruling

The Supreme Court's decision in FS Credit Opportunities Corp. v. Saba Capital Master Fund Ltd. marks a significant moment for the fund industry. In a 6-3 opinion authored by Justice Barrett, the Court declined to recognize an implied private right of action under Section 47(b) of the Investment Company Act of 1940 — resolving a longstanding circuit split and reinforcing the SEC's primary role in enforcing the Act.

Had the Court ruled otherwise, shareholders could have potentially used Section 47(b) to nullify the contracts that govern virtually every aspect of a fund's operations, creating significant legal uncertainty for fund boards and investors alike.

Join us for a timely discussion on what this ruling means for fund governance, including:

• What Section 47(b) says and why this case mattered
• How the decision preserves the role of independent directors in overseeing funds on behalf of all shareholders
• What the ruling signals about the limits of private litigation under the Investment Company Act
• Practical implications for fund boards going forward

This webinar will broadcast live at 2 pm (ET) on July 20, 2026.