From the Editor...
"Time and tide wait for no man."
Those of you hoping for a gradual easing into the new year likely learned this age-old lesson over the past couple weeks as the SEC's Division of Investment Management released its guidance on distribution-in-guise and the deadline loomed for commenting on the Commission's liquidity risk management rule proposal. Indeed, 2016 has kicked off strong and kept boards on alert and counsel busy.
After releasing only four guidance updates in 2015, the IM Division on Jan. 6 offered its thoughts on how funds and boards should approach and oversee distribution arrangements. What's somewhat controversial about these guidance updates is that the industry has no opportunity to comment or provide feedback, though many still welcome the Division's interpretation and perspective on certain issues. The industry has had a chance to comment on the SEC's rule proposal regarding the management of liquidity risk. The 90-day comment period ended Jan. 13, and both the Independent Directors Council and Mutual Fund Directors Forum—among others—took the opportunity to do so.
Both IDC and MFDF were critical of the Commission's rigid approach to liquidity risk management and offered suggestions that would make the rule less prescriptive. All the comment letters can be found on the SEC's website here.
As always, fund boards are keeping busy ensuring the seats around the table are filled with qualified, engaged members. Hartford Funds has recently added a new director and is preparing to begin searching for another to replace to 10-year veteran scheduled to retire later this year. And at RidgeWorth Funds, the board is focused on tasks associated with the adviser's mission of growth following a couple of years of acquisition-related activity. We're keen to continue bringing readers real-life examples of governance at work, and we hope you find these glances inside various boardrooms helpful. As always, we welcome your feedback.
Don't miss the latest content in Added Perspective, a research paper on reputation concerns of independent directors.
Curious about a particular topic? Need a primer on an issue? Let us know, and we'll consider turning your questions into a "10 Things" feature. Thank you, and Happy New Year!
For now,
Hillary Jackson, founding editor, Fund Board Views