From the Editor...
It's only the middle of October, and it's already been a busy quarter. On the eve of the final implementation of the Securities and Exchange Commission's money market fund reforms, the agency adopted new rules on liquidity risk management and the use of swing pricing. The final rules—introduced in proposal form just about a year ago—more clearly define the fund board's role, reduce the number of liquidity "buckets" to four (from six), and include other tweaks resulting from industry feedback. Analysis of fund boards' responsibilities under the rules is ongoing, so look for more coverage in the coming days and weeks—and throughout the roughly two-year implementation period.
Looking forward, the Kasilag v. Hartford trial is now due to start in early November. The judge in the case, to be heard in the U.S. District Court of New Jersey, has said she expects the trial to last no more than a few days. It is one of roughly two dozen similar cases that allege violations under Section 36(b) of the Investment Company Act of 1940, and much of the fund industry is expecting a victory.
Meanwhile, the Independent Directors Council has named a new chairman and the SEC's OCIE director has outlined the department's changes for its new fiscal year and its focus as it heads into FY'17. There's sure to be plenty more before year-end, as the fourth quarter is normally a busy one and this fourth quarter includes a presidential election.
As always, we love to hear from readers, so feel free to call or email anytime.
Hillary Jackson, founding editor, Fund Board Views