Viewpoints

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

Op-Ed: Nix boards’ third-party sub-adviser 15(c) duties

By Robert E. Plaze, Proskauer Rose LLP

As the mutual fund industry has evolved, fund boards have been given additional duties. If the Securities and Exchange Commission is looking for ways to reduce those duties without compromising important investor protections, it could consider eliminating fund boards’ Section 15(c) responsibilities over unaffiliated sub-adviser relationships.

How We Got Here
The ... >> CONTINUE READING <<<

Practical insights on fund mergers for independent directors

By Joanne A. Skerrett, Mutual Fund Directors Forum

The upward trend in industry consolidation is expected to continue into 2019 with increasing mergers of funds and investment adviser acquisitions. Investment advisers or their parent companies combine, reorganize and restructure to grow and streamline their businesses or gain access to new markets, technology or expertise. Fund mergers have been ... >> CONTINUE READING <<<

Government shutdown hits funds, fund boards

By Jay G. Baris, Shearman & Sterling

Many news reports have recounted how the partial government shutdown has affected government employees, shuttered national parks, and unsettled the stock market. But few, if any, have given much thought to how the shutdown affects the oversight responsibilities of mutual fund directors.

Yes, the impact of government shutdown has trickled down ... >> CONTINUE READING <<<

Fund boards and culture risk: Tackling sexual harassment, discrimination

By Nicole M. Crum, Sullivan & Worcester

As part of their larger risk oversight role, mutual fund boards are increasingly considering their role in evaluating “culture risk” and how it relates to sexual harassment and discrimination at mutual fund service providers, particularly with respect to investment advisers and sub-advisers. Culture relates to the “system of values, beliefs ... >> CONTINUE READING <<<

Fund directors: Making heads or tails of blockchain

By Jay G. Baris and Nathan J. Greene, Shearman & Sterling

Blockchain has been likened to the “second generation” of the internet. The technology, including digital assets such as coins, tokens and related derivatives, has the potential to disrupt traditional business models and investment paradigms.

With more and more large financial institutions already involved with bitcoin and similar assets, it may not ... >> CONTINUE READING <<<

Cybersecurity: A perennial, ever-evolving ‘hot topic’ for director oversight

By Stacy H. Louizos, Drinker, Biddle & Reath LLP

Cybersecurity continues to be an area of focus for the Securities and Exchange Commission staff and an important area of oversight for directors of investment companies. Although cybersecurity itself is an area of expertise requiring specialized, technical knowledge, an investment company board’s role with respect to cybersecurity is one of ... >> CONTINUE READING <<<