Forum News Feed

October 5, 2023

The Securities and Exchange Commission (SEC) proposed a rule to regulate potential conflicts of interest associated with broker-dealers’ and investment advisers’ use of AI-related technologies in their interactions with investors.

October 4, 2023

The EY Center for Board Matters plans to host a webinar entitled, “Audit Committee Responses to New Cybersecurity Developments.” The panel will discuss the latest perspectives on how audit committees can help enhance oversight of cyber and data privacy risks.

October 3, 2023

The Mutual Fund Directors Forum and Stradley Ronon announce the release of the updated white paper “Practical Guidance for Fund Directors on Valuation Oversight.” The updated white paper examines the valuation of a fund’s portfolio securities, requirements surrounding fund valuation procedures, the board’s responsibility in overseeing valuation, and the responsibilities of the valuation designee under Rule 2a-5.

October 2, 2023

The Mutual Fund Directors Forum and presenters from Brown Brothers Harriman will host a webinar entitled, “Exchange Traded Funds: A Market Update for Fund Directors.” The discussion will include ETF investor interest areas, market trends impacting ETF sponsors, and developments in the active ETF space.

September 28, 2023

Director of the Division of Investment Management, William Birdthistle, testified in front of the House Financial Services Subcommittee on Capital Markets as part of a series of oversight hearings with SEC division directors. Many members of the Subcommittee voiced concern over the short comment periods and number of proposals the Commission has proposed under Chair Gary Gensler’s tenure.

September 27, 2023

The Risk Alert notes there are more than 15,000 registered investment advisers managing over US$115 trillion in assets, and the SEC is able to examine approximately 15% of these advisers annually. Therefore, the SEC staff employs a risk-based approach to select advisers for examination.

September 26, 2023

Tomorrow, the Mutual Fund Directors Forum and Simpson Thacher & Bartlett LLP will host a webinar titled, “Introduction to Retail Private Markets Funds: Structures to Access Private Equity, Private Credit, Infrastructure and Real Estate Investments.”

September 25, 2023

The hearing covered a variety of issues including cryptocurrency regulation, swing pricing, the pace of rulemaking, private fund regulation, climate disclosure, and artificial intelligence, among other issues. On swing pricing and the hard close, Ranking Member Tim Scott (R-SC) noted his objection to the proposal stating it creates “a two-tiered system” and asked Chair Gensler if he was willing to rescind the proposal.

September 21, 2023

Yesterday, the Securities and Exchange Commission by a vote of 4-1 advanced a final rule on Investment Company Names. The rule, originally proposed in May 2022, expands the number of funds that must comply with the Names Rule’s requirement to adopt policies to invest at least 80 percent of their assets in alignment with the fund’s chosen name, updates the rule’s notice requirements, and establishes recordkeeping requirements.

September 20, 2023

Dechert plans to host the firm’s California Investment Management Symposia which will highlight the intersection of rapidly evolving market and technological developments with the adverse legal and regulatory environment for investment advisers, fund managers, and fintech firms.

September 19, 2023

A group of bipartisan members of the U.S. House of Representatives sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler voicing their opposition to the Commission’s open-end fund liquidity, swing pricing, and hard close proposal. The letter notes, “The SEC has not adequately identified a market failure, or a significant market threat, that this proposal would address.”

September 18, 2023

Morgan Lewis plans to host a webinar titled, “Registered Funds Trends and Developments Quarter in Review.” This series of webinars focuses on the latest trends and developments impacting funds regulated by the Investment Company Act of 1940.

September 14, 2023

According to a recent client alert from Ropes & Gray, these reforms include several quarterly reporting requirements with respect to performance and fees and expenses, increased transparency regarding side letters and other “preferential treatment” for fund investors, prohibitions on certain liquidity rights and information sharing with fund investors, and limitations on the ability of fund managers to obtain reimbursement from private funds for costs associated with government investigations. In response to the final rule and new requirements, on September 1, an industry coalition comprised of trade groups representing the hedge fund, private equity, and venture capital firms filed a lawsuit in the United States Court of Appeals for the Fifth Circuit against the SEC challenging the final rule.

September 13, 2023

The outlook highlights several important items that Congress must address, many before September 30. This includes passing all twelve appropriations bills in order to avoid a government shutdown on September 30, reauthorizing the National Defense Authorization Act, the Federal Aviation Administration’s authorization, as well as passing a Farm bill and addressing the National Flood Insurance Program reauthorization.

September 12, 2023

The Mutual Fund Directors Forum plans to host a webinar with Professor Scott D. Stewart from the S.C. Johnson College of Business at Cornell University entitled, “Improving Equity Fund Alpha Estimates.” Professor Stewart’s research has shown that supplementing traditional alpha estimate models with a second size factor significantly improves statistical fit and yields new fund rankings.

September 11, 2023

The Mutual Fund Directors Forum and Dechert plan to host a webinar entitled, “Navigating the Recent SEC Rulemakings: Money Market Fund Reforms.” The program will review the recently finalized amendments and discuss the impact on the money market fund industry and, particularly, the boards of directors of money market funds.

September 7, 2023

The program will focus on the legal and ethical risks, mitigation, and best practices to consider across the financial services space as the industry leans into generative AI technology.

September 6, 2023

Tomorrow, September 7 at 2:00pm ET the Mutual Fund Directors Forum and members of EY’s Asset Management practice will discuss Regulated Investment Company year-end shareholder reporting and provide an overview of areas of risk in RIC taxation.

September 5, 2023

Ernst & Young recently published a paper titled, “Four Lessons for Boards in Overseeing Emerging Technology” that highlights the need for boards to understand the potential risks and unintended consequences of technological innovation. The paper discusses the need for boards to be curious about emerging technology, be hands-on, embrace innovation without being reckless, and be inclusive and responsible when implementing new technologies.

August 31, 2023

Last October, the Mutual Fund Directors Forum published a four-part series on the board recruitment process highlighting the use of executive search firms, alternative candidate search tools, succession planning, building personal networks, and general questions to consider when looking to fill a vacancy.