From the Editor...

February 19, 2016

By Hillary Jackson

From the Editor...

 

Mutual fund boards and advisers always have a lot to accomplish in a given year, but work accomplished in 2016 will be the culmination of years of discussion and planning for those overseeing money market funds. "The year of implementation" has kicked off with directors and management reviewing—with the board ultimately approving—procedural changes regarding diversification and stress test requirements and disclosures both on the web and in registration statements and advertisements to meet an April 14 compliance deadline. Next up is what some might consider the most challenging work as the money fund industry heads into the final period before the Oct. 14 compliance deadline for full implementation of the Securities and Exchange Commission's money market fund reforms, which were finalized in July 2014.

 

Looking ahead at the regulatory landscape this year, at least one industry veteran expects some movement on a number of outstanding initiatives, including the Department of Labor's fiduciary rule, and possibly the SEC's proposals on fund use of derivatives and liquidity risk management. Former Division of Investment Management Director Norm Champ addressed fund directors, discussing his views on what may come out of the SEC this year, at an event in New York earlier this month. He also expects the Department of Labor fiduciary rule to come out before the presidential election

 

We're hearing more today on that score, as the Practising Law Institute is hosting its annual "SEC Speaks" event in Washington, D.C.

 

Another top agenda item for fund boards throughout the year is succession, as directors retire or step down for various reasons—or a board determines a need to grow its size. Recruiting is such an important task, and getting organized before embarking on the process is a great way to ensure it goes smoothly. In our latest 10 Things, we provide some guidance on launching a director search. Do check out previous 10 Things, as they're great resources on a building library of topics. 

 

In addition to these topics, we continue to follow industry litigation, which recently touched Great-West Capital Management and which is being played out in a Trenton, N.J., courtroom in the Sivolella v. AXA Equitable Life Insurance Co. case. We'll keep you updated on those and the scores of other 36(b) cases making their way through the legal system. 

 

We're also beginning to plan for the spring (is it here yet??) conference season, with our eye on the programs for Investment Company Institute's 2016 Mutual Funds and Investment Management Conference in Orlando and Mutual Fund Directors Forum's 2016 Policy Conference in Washington, D.C. We hope to see you at those events and others in the coming months. 

 

For now,

 

 

Hillary Jackson, founding editor, Fund Board Views

 

 

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