MFDF News Feed

July 31, 2025

According to the survey, 40% of firms have formally adopted AI tools for internal use cases, and another 25% are actively exploring AI adoption; however, only 5% of firms are using AI to support client interactions. 60% of firms claimed “cybersecurity or privacy concerns around AI tools” as the reason they have not formally adopted AI technology tools.

July 30, 2025

In July, Erica Williams stepped down as head of the Public Company Accounting Oversight Board (PCAOB) at the request of current Securities and Exchange Commission (SEC) Chairman Paul Atkins. It was announced on July 21 that George Botic would serve as acting Chair of the PCAOB.

July 29, 2025

In response to the passage of the GENIUS Act, SEC Chairman Paul Atkins praised the work of both the House and Senate and noted, “I look forward to continuing to work to make America—already the world’s leader in financial market innovation—the center of crypto asset innovation as well.”

July 24, 2025

ISS sued the SEC, and the DC Circuit Court found that the SEC’s definitions were inconsistent with Section 14(a) of the 1934 Act. In a client alert, Stradley Ronon noted “the court held that the SEC’s definition was inconsistent with the meaning of “solicit” as Congress would have understood it to mean when adopting the Exchange Act.”

July 23, 2025

Philip Hinkle and Katie Coghlan with Dechert LLP will share an update on the use of derivatives in RICs and what boards should know for their oversight responsibilities.

July 22, 2025

According to a client alert from Stradley Ronon, the defendants re-filed their motion to dismiss all charges arguing, “that the plain text of the statute did not grant rulemaking authority related to fund liquidity and resubmitted its arguments challenging the SEC’s failure to state a claim for aiding and abetting liability against the independent trustees.” The SEC agreed to dismiss all charges against the independent trustees with prejudice, meaning that the SEC cannot refile the charges.

July 21, 2025

The program will offer practical insights across many fundamental cybersecurity topics as well as current events in the cybersecurity world that board members should consider.

July 17, 2025

Morningstar highlights the landscape, flows, performance, and cost of semiliquid funds. The report details the expansion of private credit and highlights certain investors demand for greater returns, while also emphasizing the noteworthy risk associated with less liquid assets.

July 16, 2025

According to a Ropes & Gray client alert, the outcome of the Supreme Court case “will have broad implications for registered funds governed by the ICA (including mutual funds, exchange-traded funds (ETFs) and closed-end funds), as the litigation door opened by the Second Circuit risks upending the long-established regulatory structure that is the fund industry’s bedrock.”

July 15, 2025

Morgan Lewis partners Elizabeth Herrington, James Nelson, Rishi Satia, Jaclyn Unis Whittaker, and Ezra Church plan to touch on current investigations by state attorneys general regulatory considerations, and other additional topics.

July 14, 2025

Donohue notes the responsibilities that fund officers and directors have under state law as well as the federal securities laws, including the 1940 Act, which can help to guide the management of potential conflicts relating to financial interests, personal interests, conflicting obligations or family interests.

July 10, 2025

Ropes & Gray partner Paulita Pike will highlight the top ETF conversion issues that fund boards should consider in their oversight roles.

July 9, 2025

Brian McCabe, partner at Ropes & Gray, will share updates and insights on key takeaways for boards to consider in mergers and acquisitions as well as consolidations in the asset management industry.

July 8, 2025

Mutual fund boards, hopefully, never will have to face Enron-like debacles or Kodak’s missed opportunities, however the essential lessons in Adapt or Fail may help boards improve their effectiveness in fund oversight, decision-making and governance. The authors are governance experts and adjunct professors with decades of experience in leadership.

July 7, 2025

EY's Amy Snyder, tax principal in EY's Asset Management practice, and Lisa Wolski, managing director of EY's Washington Council, will provide tax policy updates for boards of registered investment companies as well as an overview of the budget reconciliation package and potential impact on the fund industry.

July 3, 2025

Under Chair Atkins’ leadership, the Enforcement Division is likely to turn its focus to the “historical core mission” of the SEC, including investor protection (particularly vulnerable populations like seniors), while also focusing on classic fraud, market manipulation, and cases involving a breach of fiduciary duty.

July 2, 2025

MFDF Chair Buddy Donohue notes that accountants serving the fund industry may be faced with pressures relating to fee structures, cross-selling of services, and/or client retention that could impact their independence or judgment. Fund directors should remain mindful of the watchdog function that accountants perform and inquire about internal controls, as well as how any existing or potential conflicts are identified and mitigated.

July 1, 2025

The SEC has recently replaced its Crypto Assets and Cyber Unit with the newly formed Cyber and Emerging Technologies Unit (CETU). This reorganization is in alignment with the SEC’s shift towards prioritizing enforcement actions involving fraud and misconduct relating to emerging technologies, particularly to the extent that they impact retail investors.

June 30, 2025

In the podcast, Carolyn McPhillips the President of MFDF, highlights the responsibilities of fund directors and outlines their duties with respect to the fund and the advisor, including fees, performance, and conflicts of interest, among others. Carolyn further highlights the rise of alternative assets in retail products and how fund directors may become more crucial as products become more complicated.

June 26, 2025

The SEC has recently eliminated its long-standing limit on investments in private funds by retail closed-end funds and business development companies. This shift is in alignment with the SEC’s stated goals of promoting financial innovation and expanding retail access to private markets.