MFDF Releases Practical Guidance On Board Self-Assessments
The MFDF today released a publication titled Practical Guidance for Fund Directors on Board Self-Assessments. The new paper provides important guidance and strategies for boards to consider when conducting their annual self-assessments. “While the regulatory framework around board self-assessments has not changed in over a decade, the industry has rapidly evolved and so have the responsibilities and workloads of fund boards,” said Joanne Skerrett, counsel at the Forum. “The guidance provides boards with considerations, tools and strategies to derive more value from the assessment process with the goal of improving boards’ effectiveness in carrying out their fiduciary and oversight responsibilities.” The paper provides an overview of the SEC’s requirements on board self-assessments; discusses board accountability in the evaluation process; sets out questions and topics boards can address in their evaluations; and discusses emerging topics in the boardroom such as crisis preparedness, ESG, and diversity, equity, and inclusion. The paper recognizes that boards continue to have wide latitude in designing their assessments, whether they use the interview or questionnaire method, or whether they choose to employ individual and peer reviews. The paper also lists certain outcomes that boards may strive for as they seek to derive more value from their annual assessments.
The paper can be read and downloaded here.