News

February 6, 2025

On January 10, the Securities and Exchange Commission announced a settlement with Liquidnet, Inc. an operator of multiple alternative trading systems (ATS) for failing to comply with the market access rule and other rules governing ATSs.

February 5, 2025

During the hearing, Scott Bessent voiced his support for tariffs, noting that they were a versatile tool that could be used to remedy unfair trade practices, raise revenues, and provide leverage in trade negotiations. He also voiced his support for an extension of the Tax Cuts and Jobs Act of 2017 (TCJA) provisions, particularly individual tax rates.

February 4, 2025

The SEC Order found that Vanguard made “misleading statements related to capital gains distributions and tax consequences for retail investors who held Vanguard Investor Target Retirement Funds in taxable accounts.” Vanguard was fined a total of $106.41 million for its violations of the Investment Adviser Act and Investment Company Act.

February 3, 2025

Morgan Lewis plans to hold a series of webinars titled “Artificial Intelligence (AI) Boot Camp.” This series will explore the challenges and benefits of AI technology across several issue areas including the use of AI by the U.S. Government, copyright law, privacy, cybersecurity, and algorithmic pricing in anti-trust cases, among other topics.

January 30, 2025

In the FAQs, the SEC staff outline several common questions received from industry participants on the following topics: The Definition of “Income”, “High-Yield”, “Money Market”, and “Tax-Sensitive” terms; Adoption of an 80% Investment Policy; and Tax-Exempt Funds.

January 29, 2025

According to an SEC press release, the Task Force will help “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.” The task force will provide technical assistance to Members of Congress, coordinate with federal departments and agencies (including the CFTC), as well as state and international regulatory bodies.

January 28, 2025

FDIC regulators requested information from the three largest asset managers Vanguard, BlackRock, and State Street Global Advisers on their passive ownership of bank shares totaling over 10% of shares. In late December, Vanguard entered into an agreement with the FDIC that enhances the agency’s oversight into its holdings. After the announcement of the passivity agreement with Vanguard, the FDIC also raised concerns with BlackRock’s holdings.

January 27, 2025

On Tuesday, January 21 President Donald J. Trump designated Mark Uyeda as Acting Chairman of the Securities and Exchange Commission. Prior to his service as Acting Chair and Commissioner, Uyeda served as Senior Advisor to Chairman Jay Clayton, Counsel to Commissioners Michael Piwowar and Paul Atkins, and Assistant Director and Senior Special Counsel in the Division of Investment Management.

January 23, 2025

Several senior members of the Securities and Exchange Commission staff have announced their intention to depart the agency. With SEC Chair nominee Paul Atkins likely to face a confirmation hearing in the coming weeks, it is unclear when he will enter the building and who will take over as head of the operating divisions.

January 22, 2025

Morgan Lewis will host a webinar titled, “Registered Funds: Trends and Developments.” The program will focus on regulatory issues impacting registered funds.

January 21, 2025

All fund directors are encouraged to participate to allow MFDF to collect sufficient data to serve as a basis for a report for boards on recruitment practices. Importantly, none of the information collected through the survey will be attributed in any way to any board, company, or participant.

January 16, 2025

The program will cover key compliance issues as funds and advisers incorporate AI technology into their business model and investment strategy. Kevin Gleason, Adam Aderton, and Carlo di Florio will discuss compliance considerations as well as the regulatory outlook for AI.

January 15, 2025

In a complaint recently filed in the U.S. District Court for the Eastern District of Kentucky, 18 state attorneys and the DeFi Education Fund allege the Securities and Exchange Commission (SEC) exceeded its regulatory authority over digital assets.

January 14, 2025

In its decision, the Fifth Circuit held that the SEC failed to prove that Nasdaq’s Board Diversity Rule was consistent with the requirements of the Securities Exchange Act of 1934. According to a client alert from Davis Polk, the “court’s decision means that Nasdaq-listed companies, including foreign private issuers, need not comply with Nasdaq’s board diversity rules.”

January 13, 2025

The program, part of the MFDF series on Artificial Intelligence, will cover how fund directors might themselves use AI and the related risks and caveats. Sidley Austin's Nathan J. Greene & Carla G. Teodoro will highlight how board members might begin to appropriately leverage AI while remaining mindful of its limitations.

January 9, 2025

According to a recent Nasdaq Center for Board Excellence article, many attorneys are concerned about the potential for AI to expose privileged information. The article notes that “[t]he integration of AI into legal practices offers opportunities but also introduces risks that could undermine the confidentiality of sensitive communications.”

January 8, 2025

Dianne Descoteaux, MFDF's senior counsel, will lead the discussion on board processes as covered in MFDF’s 15(c) White Paper, Part Two. Dianne will be joined by MFDF member directors Buddy Donohue, BNY Mellon Family of Funds; Keith Hartstein, Prudential Retail; and Darlene Deremer, VALIC Funds.

January 7, 2025

The MFDF 15(c) White Paper is intended to serve as a reference regarding the advisory agreement renewal process and relevant enforcement actions, as well as a resource of possible approaches to 15(c) board processes and avenues directors may consider when analyzing complex or challenging facts and circumstances in their review.

January 6, 2025

Deloitte's Paul Kraft, partner and Investment Management Marketplace Excellence Leader, and Audit & Assurance Senior Managers Michelle Coombs and Matt Morlock will highlight the results from the 22nd annual Fair Valuation Pricing Survey that confirms fair valuation remains a critical focus for fund groups.

December 23, 2024

While recorded earlier this year, the topics of each program remain pertinent for independent fund directors, CCOs, and industry service providers.