Viewpoints

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

Op-Ed: Does a mutual fund board need a staff?

By C. Meyrick Payne and Frank Tarantino

Does a mutual fund board need a staff? The complexity of fund board issues is increasing due to regulation, competition, product offerings, technology, and pricing alternatives. Furthermore, the trend toward large mergers of ever-more-complicated fund groups adds to the responsibilities and difficulties faced by fund boards. All of this calls ... >> CONTINUE READING <<<

Rule 2a-5 draft: Thoughts on the evolution of fair value, from a fellow gatekeeper

By John Braun, BBD, LLP

In April, the Securities and Exchange Commission released proposed Rule 2a-5 under the Investment Company Act of 1940, which addresses valuation practices and the relative role of the board of directors for registered investment companies and business development companies. The comment period for this proposed rule ran through July 21, ... >> CONTINUE READING <<<

CEF securities offering reforms, no-action relief create board challenges

By Ethan Corey, Practus, LLP

On April 8, the Securities and Exchange Commission adopted rule and form amendments to modify the registration, communications, and offering processes for business development companies and other closed-end funds under the Securities Act of 1933.[1] Among other things, the amendments are expected to facilitate CEFs’ ability to offer their shares ... >> CONTINUE READING <<<

Technology oversight demands fund board’s attention

By Peg McLaughlin

COVID-19 has completely upended how all firms conduct their business. A shift to the work-at-home model, where existing technology assets were hastily combined with personal devices and networks, created unprecedented risk for companies. Performance of technology resources in the days and months following the implementation of COVID restrictions and the ... >> CONTINUE READING <<<

In-Person Board Meetings Are So 2019

By Jay G. Baris and Nathan J. Greene, Sidley Austin LLP

For all of us, video meetings are the new normal, and at least for now few directors yearn to return to the days of traveling to board meetings. This sudden change in circumstance revealed the virtual elephant in the virtual boardroom: Has the in-person meeting requirement outlived its usefulness? Should ... >> CONTINUE READING <<<

How, why fund boards should leverage internal audit

By Kate Ives

Did you know that May is International Internal Audit Awareness Month? I wanted to use this little-known holiday to remind mutual fund board members about an often underutilized resource that can help them navigate some of the new risks posed by COVID-19.

Internal audit is normally a function of the adviser. ... >> CONTINUE READING <<<