News

September 25, 2024

Reportedly, the Securities and Exchange Commission (SEC) has disbanded the “Climate and ESG Enforcement Task Force” created in March 2021. The Task Force brought actions against a variety of financial entities, including BNY Mellon Investment Adviser, Inc. and Goldman Sachs Asset Management, for omissions and failure to follow established policies and procedures related to ESG investments.

September 24, 2024

In August, the Securities and Exchange Commission (SEC) approved the two Public Company Accounting Oversight Board’s (PCAOB) proposed audit standards as well as an amendment to PCAOB’s contributory liability rule.

September 23, 2024

The hearing focused on the role proxy advisory firms play in making recommendations to shareholders on ESG-based policies. At the opening of the hearing, Subcommittee Chairman Bill Huizenga (R-MI) noted proxy advisory firms’ “heightened influence is increasingly concerning when considering the fact that the two largest proxy advisory firms control an estimated 97 percent of the market.”

September 19, 2024

The letter urged Treasury to take a “sectorial” approach that “ensures primary regulators, who understand their respective markets and AI use cases within those markets, retain the regulatory authority to proceed in a technology-neutral manner.”

September 18, 2024

Drawing from the expertise of fund directors who have incorporated skills matrices, this report includes common elements seen on fund board matrices, questions for consideration, and possible formatting approaches, among other guidance for each stage of the process.

September 17, 2024

The alert notes interesting developments in the areas of crypto, activist short selling, and cybersecurity. According to the client alert, the Court’s rejection of this application of Section 13(b)(2)(B) to cybersecurity may force the Commission to rethink its attempt to expand the scope of the internal accounting control provision.

September 16, 2024

The program will focus on the new product development process through the eyes of a portfolio manager. This program is intended to be an ‘intermediate’ level webinar and is part of MFDF’s ETF series.

September 12, 2024

The Securities and Exchange Commission (SEC) charged six nationally recognized statistical rating organizations (NRSROs) with recordkeeping failures by the entities and employees to maintain and preserve electronic communications. The combined civil penalties total over $49 million for violations of Section 17(a)(1) of the Securities Exchange Act of 1934 and Rule 17g-2(b)(7) which, in part, requires a NRSRO to make and retain complete and current books and records.

September 11, 2024

September 10, 2024

The program will cover how the latest Supreme Court decisions related to the Chevron Doctrine, Administrative Law Judges (ALJs), and agency administrative proceedings may impact the fund industry and government agencies.

September 9, 2024

The report addresses factors affecting committee structure; committee assignments and rotations; committee leadership assignments; and rotations; and views on creating efficient committees.

September 5, 2024

In this final section of the Director Onboarding Series, we will discuss creating onboarding education that sticks. The techniques described here reduce the content, spread it out over time, and/or establish a method by which directors can get another pass at the information after having earned additional context through participation in a meeting cycle.

September 4, 2024

The program will focus on an SEC rulemaking update, Advisers Act updates, and US Treasury clearing rules, among other topics. The program will feature several partners and other members of the Morgan Lewis financial services regulatory practice.

September 3, 2024

In addition to its failure to disclose material conflicts of interest associated with its receipt of revenue sharing payments, the settlement also stated that Cadaret breached its duty of care in connection with its role in recommending and selecting cash sweep options and NTF share classes for its clients.

August 29, 2024

On Wednesday, the Securities and Exchange Commission (SEC) voted 3-2 to adopt amendments to reporting requirements on Form N-PORT (portfolio holdings) and Form N-CEN. The original proposal included a swing pricing mandate for open-end mutual funds, implementation of a ‘hard close’ requirement, and the removal of the “less liquid investment” liquidity bucket. After industry-wide pushback, as well as bipartisan opposition from Capitol Hill, none of these controversial proposals were adopted in the finalized amendments.

August 28, 2024

For the fourth installment of the Director Onboarding Series, we have selected a few methods that may be helpful in setting new board members up for success. In different ways, each of these approaches expose incoming directors to knowledge and experience that will serve them long-term in their roles on the board.

August 27, 2024

The program, while geared toward all categories of directors, discusses the impact of the Loper Bright and Relentless, Inc. decisions impacting the 40-year precedent of the Chevron Doctrine, in which courts defer, under certain circumstances, to agencies’ reasonable interpretation of the statutes they administer. The panelists highlighted the facts of each case, key points of the Supreme Court opinions, and discussed how the regulatory landscape would likely be impacted.

August 22, 2024

The third installment of the Director Onboarding Series focuses on building a board culture through onboarding. In this post, we have drawn out two ideas that may foster strong relationships between directors to encourage the kinds of respectful, engaged communication that are the hallmarks of strong, effective boards.

August 21, 2024

In a Korn Ferry report titled “The Optimal Board: 4 Ways to get the Best Out of Your Board,” the authors examine policies boards may adopt to better integrate new board members as well as improve board culture and cohesion. Additionally, the report highlights that optimal boards “not only encourage all members to speak up and ask questions but also make sure every voice is valued and can shape decisions.”

August 19, 2024

The SEC reached a settlement total of $392.75 million in connection with the settlements. The firms involved were each charged with violating recordkeeping requirements of the Advisers Act, the Exchange Act, or both, as well as with failure to reasonably supervise their personnel in order to detect and prevent such violations.