Viewpoints

Articles written by industry professionals for Fund Board Views, may be opinion, commentary, educational/instructional.

Guide to derivatives rule 2.0 (and how we got here)

By Nathaniel Segal, Vedder Price P.C.

In late November 2019, the Securities and Exchange Commission checked another item off its ambitious rulemaking agenda with a rule proposal involving one of the more complex but increasingly relevant areas of fund regulation: the use of derivatives instruments by registered funds. Proposed rule 18f-4 under the Investment Company Act ... >> CONTINUE READING <<<

Fund proxy voting: What’s the board’s role?

By Sara P. Crovitz, Stradley Ronon

In the last few years, the financial press has increasingly focused on how institutional investors, particularly mutual funds, impact the public companies in which they invest.[1] Whether controversial director elections, shareholder proposals related to ESG themes, or the threat of common ownership in particular industries, articles point to the power ... >> CONTINUE READING <<<

Op-Ed: Whither valuation guidance?

By Douglas Scheidt

The Securities and Exchange Commission should issue valuation guidance for investment companies. When I was chief counsel in the SEC's Division of Investment Management from 1997 to 2018, I frequently advocated for the SEC to issue valuation guidance. Although the SEC has indicated a willingness to do so on several ... >> CONTINUE READING <<<

Op-Ed: Reflections and observations on mutual funds

By Andrew J. Donohue

Having been associated with the mutual fund industry for over 40 years, I have had the opportunity to witness its growth and evolution. I recently decided to look back and see whether my observations were supported by statistics. I thought I might share the results of that endeavor with you, ... >> CONTINUE READING <<<

Board oversight of non-fully transparent active ETFs

By Mark D. Perlow, Stephanie A. Capistron, and Margaret E. Wilson, Dechert LLP

Earlier this year, the Securities and Exchange Commission issued the first exemptive order permitting the operation of actively managed exchange-traded funds that do not disclose their full holdings daily. This order and other pending applications have garnered a significant amount of attention, including from active managers that previously were deterred ... >> CONTINUE READING <<<

Fund Directors: Here’s what you should know about AI

By Jilaine Bauer

In 2016, the White House published its report on the future of artificial intelligence with 23 specific recommendations for further action by federal agencies and others to help ensure AI applications are used for public good. Since then, the financial services industry and its regulators have moved quickly to broaden deployment of ... >> CONTINUE READING <<<