• April 25, 2024

    House Financial Services Committee Holds Hearing on SEC’s Climate Disclosure Rule, Agency Overreach

    During the hearing, which heard testimony from several witnesses including former acting SEC Chair Elad Roisman, Committee Chairman Patrick McHenry (R-NC) stated the Commission’s final climate rule exceeds the statutory authority because Congress “never authorized the Commission to be a climate regulator.” Some Members noted that the materiality standard should already cover key climate disclosures by publicly listed companies.

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  • April 24, 2024

    Commission Charges First Stand-Alone Investment Advisor in Off Channel Communications Enforcement Action

    The SEC’s sweep of off-channel communications enforcement actions over the past several years has now extended to a stand-alone private fund investment adviser for the first time. In the latest enforcement action, the SEC order found that employees throughout the advisory firm communicated about firm-related business internally and externally using personal texting platforms and other electronic communication services that were not retained.

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  • April 23, 2024

    PWC Releases 2023 Mutual Fund Directors Governance Survey

    PWC recently released their “2023 Mutual Fund Governance Survey” which highlights how investor expectations, regulatory deluge, and technology are impacting the oversight for fund directors. Interestingly, the survey found that over 70% of fund directors believe the outsized regulatory agenda is “expected to have the most significant impact on the mutual fund industry over the next three years—with fee pressure, movement to passive products, and technology transformation closely following.”

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  • April 22, 2024

    SEC Announces Settlements for Marketing Rule Violations, Releases Marketing Rule Risk Alert

    The SEC announced that it had settled charges against five registered investment advisers for violations of the Marketing Rule, including hypothetical performance presentations that were inapt and reflected deficient policies and procedures, among other violations. Additionally, on April 18, the SEC Division of Examinations issued a Risk Alert regarding the staff’s observations from its Marketing Rule examinations to date.

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  • April 18, 2024

    Highlights of SEC Speaks 2024

    Among the highlights of the sessions, Chair Gensler offered a historical overview of securities laws and discussed the importance of clearinghouses and best execution duties. Commissioner Peirce offered several suggestions to increase public engagement with the SEC, and Commissioner Uyeda reviewed weaknesses in the SEC’s recent climate rule.

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  • April 17, 2024

    Dimon’s Annual Letter Highlights Challenges for Asset Management

    In his annual letter to JP Morgan Chase & Co. shareholders, Chairman & CEO Jamie Dimon warned of several issues impacting the asset management industry and JP Morgan itself. Dimon noted that many asset managers have stewardship experts that review proxies, “the reality is that many of these committees default large portions of what they do to proxy advisors and, more troubling, make it harder for actual portfolio managers to override this decision making.”

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  • April 16, 2024

    SEC Voluntarily Stays Implementation of Climate Rule

    The Securities and Exchange Commission (SEC) announced it would voluntarily stay the implementation of its new climate disclosure rule pending the completion of judicial review by the Court of Appeals for the Eighth Circuit. The Commission stated, however, that it will “continue vigorously defending the Final Rules’ validity in court and looks forward to expeditious resolution of the litigation.”

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  • April 15, 2024

    MFDF Event: MPI's Annual Survey of Investment Firm Profitability and Economies of Scale

    The webinar will highlight the latest from the MPI Annual Survey of Investment Firm Profitability and implications for fund director oversight.

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  • April 11, 2024

    MFDF Publishes Article on AI, What Fund Boards Need to Know

    In early April, MFDF published an Investment Lawyer article titled, “Artificial Intelligence Oversight: Implications for Mutual Fund Boards,” which provides an overview of artificial intelligence and the current regulatory environment, as well as key oversight considerations for fund directors.

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  • April 10, 2024

    Nasdaq Releases Article on Board Service During “Noisy” Times

    The article notes that to fulfill their role, boards need to stay abreast of new developments and continue their intellectual curiosity. Additionally, the article states that “[e]ach person at the table has a duty to contribute to discussions by asking questions and, when necessary, challenging groupthink.”

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  • April 9, 2024

    Event of Interest: K&L Gates to Host Webinar on AI Regulatory, Compliance Issues for Asset Mangers

    Panelists will discuss the future of SEC regulation of AI and predictive data analytics, congressional initiatives affecting AI in financial services, compliance and risk considerations for generative AI, and best practices for AI governance.

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  • April 8, 2024

    MFDF Webinar: Closed-End Fund Litigation Update

    The program will highlight recent court decisions, pending litigation, and an overview of CEF activism to date.

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  • April 4, 2024

    SEC Releases Risk Alert on Shortened Settlement Cycle

    The Division of Exams highlights the impact the shortened settlement cycle will have on market participants like broker-dealers, clearing agencies, and registered investment advisers. Changes include analyzing current business practices to ensure they conform to new requirements, updating computer systems, and adjusting certain technology features.

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  • April 3, 2024

    SS&C Releases White Paper on the Rise of ETFs

    The paper highlights the advantages of the ETF wrapper including intraday trading, tax efficiencies, and lower fees all of which are leading to increased investor flows and increased mutual fund to ETF conversions. Additionally, the paper covers whether the rise of ETFs means the "death" of mutual funds more generally.

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  • April 2, 2024

    2024 MPI Annual Mutual Fund CCO Compensation Survey

    Management Practice Inc. (MPI) is currently working on their annual “Survey of Mutual Fund Chief Compliance Officer Compensation and Organizational Practices” and requests participation from the CCO community in gathering data.

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  • April 1, 2024

    Event of Interest: Brookings to Host Webcast on the Rise and Risk of Private Credit

    The event will focus on the growth of private credit, concerns from certain banks about competition, and fears from regulators about the impact on financial stability.

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  • March 28, 2024

    Lawsuits Commence Over Commission’s New ESG Rule

    After the Commission released its final rule “The Enhancement and Standardization of Climate-Related Disclosures for Investors” nine separate petitions were filed to challenge legal challenges were filed against the Commission’s rule. On March 22, it was announced that the Eighth Circuit Court would hear the case.

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  • March 27, 2024

    SEC Announces Enforcement Actions Against “AI-Washing” Advisers

    On March 18, the Securities and Exchange Commission announced an enforcement action against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about their use of artificial intelligence (AI).

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  • March 26, 2024

    EY Releases Update on Registered Funds Reporting and Regulation for 2024

    A panel of EY financial services experts weighs in on the latest developments impacting registered funds, including a legislative and regulatory update.

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  • March 25, 2024

    House Advances Closed-End Fund Bill, Obstacles Remain

    The U.S. House of Representatives advanced a package of bills titled “Expanding Access to Capital Act of 2023” (H.R. 2799) by a party line vote, 212-205. In addition to the package of bills, several amendments were offered on the House Floor as part of the package, including the “Increasing Investor Opportunities Act” sponsored by Capital Markets Subcommittee Chairman Ann Wagner (R-MO).

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