Top of the Agenda - Regulatory

ICI pursues reforming, modernizing '40 Act

By Hillary Jackson

The Investment Company Institute this week made public a set of recommendations to reform and modernize the Investment Company Act of 1940, which has not been comprehensively reviewed in more than three decades. The 12-page document addresses four main themes and makes 19 specific recommendations, including five that cover the ... >> CONTINUE READING <<<

Names Rule FAQs: Some clarity, but not enough

By Hillary Jackson

The Securities and Exchange Commission issued FAQs on the amended Names Rule last week, a development expected by a fund industry that has been requesting guidance since the amendments were adopted in 2023. And while the new FAQs address some issues, they fail to address all issues related to the ... >> CONTINUE READING <<<

SEC: Record penalties, fees in FY'24, enforcement actions drop

The Securities and Exchange Commission collected a record $8.2 billion in penalties and fees during its most recent September-ending fiscal year, even as the number of enforcement actions fell by 26% to 583 in total. SEC Chairman Gary Gensler attributed the drop in enforcement actions to the Division of Enforcement's ... >> CONTINUE READING <<<

Fund governance pros surprised, concerned by SEC risk alert

By Hillary Jackson

The Securities and Exchange Commission this week said it found "deficiencies" and "weaknesses" in mutual funds' governance practices during examinations over the past four years. The issues cited in a Nov. 4 risk alert surprised industry members and sparked concern that the SEC and its Division of Examinations may be ... >> CONTINUE READING <<<

SEC's exam priorities are 'roadmap' for fund boards

By Hillary Jackson

The Securities and Exchange Commission has released its examinations priorities for 2025, and industry lawyers told Fund Board Views the 22-page document should serve as a roadmap of sorts for mutual fund boards as they plan out their own priorities for the coming year. "Boards of directors should take the ... >> CONTINUE READING <<<

SEC WisdomTree case reminder to advisers, boards

By Hillary Jackson

The Securities and Exchange Commission this week charged WisdomTree Asset Management with failing to follow its own investment criteria for three actively management ESG-marketed exchange-traded funds that were liquidated earlier this year. The board overseeing the ETFs was not found to be at fault, but governance experts say the case ... >> CONTINUE READING <<<