In the Margins

MFDF to SEC's Clayton: Carefully define director role

July 17, 2017

By Mutual Fund Directors Forum

Mutual Fund Directors Forum last month sent a letter to Securities and Exchange Commission Chairman Jay Clayton, in which it expressed concerns about burdens placed on independent fund directors and urged the agency to carefully define the role directors should play. "We are concerned that the Commission’s approach in recent years has placed too many burdens on directors, has gone too far in implicitly impelling them to become involved operationally in their funds activities, and thus has inhibited their ability to spend time on issues that matter most to their shareholders and to exercise their business judgment flexibly on behalf of those shareholders. We therefore believe that it is imperative that the Commission carefully and systematically analyze and define the role it intends for directors to play," the letter states. Read the letter from MFDF.