Top of the Agenda - Regulatory

Counsel: SEC's ESG risk alert may spur board discussions

By Hillary Jackson

As demand for investments that incorporate environmental, social and governance factors has heated up in recent years—and the asset management industry has responded—the Securities and Exchange Commission has sharpened its focus on the space. Mutual fund governance professionals say the SEC's focus should spur fund boards to make sure they ... >> CONTINUE READING <<<

New SEC exam priorities can 'direct directors'

By Hillary Jackson

Independent mutual fund directors are likely to get a readout from counsel in the coming weeks on where the Securities and Exchange Commission's newly named Division of Examinations is planning to focus this year, according to industry lawyers. While they noted that the Division's list of 2021 priorities is expansive—likely ... >> CONTINUE READING <<<

Blass's time at SEC marked by 'listening, getting things done'

By Hillary Jackson

Dalia Blass this month will wrap up her more than three-year tenure as director of the Securities and Exchange Commission's Division of Investment Management, a time marked by cooperation with and responsiveness to the mutual fund industry and, specifically, fund boards. "She took the reins during relatively quiet regulatory times ... >> CONTINUE READING <<<

SEC finalizes fair valuation rule

The Securities and Exchange Commission on Thursday adopted a new rule on fund valuation practices, the first comprehensive update in 50 years. Rule 2a-5 will permit boards to designate certain parties to perform fair value determinations, defines when market quotations are "readily available," and designates a threshold for determining whether ... >> CONTINUE READING <<<

Morningstar Funds to SEC: Tell shareholders about boards

By Hillary Jackson

The Morningstar Funds board has called on the Securities and Exchange Commission to add information about the fund board's role to the tailored mutual and exchange-traded fund shareholder reports the agency proposed in August. The SEC has moved to streamline and simplify the reports in an effort to aid retail ... >> CONTINUE READING <<<

SEC finalizes derivs rule, integrating industry comments

By Hillary Jackson

The Securities and Exchange Commission this week finalized its rule on funds' use of derivatives, making some notable changes to what was proposed nearly a year ago but maintaining its expectation that boards will take an active role in their oversight of such activity. Although industry lawyers and others are ... >> CONTINUE READING <<<