From the Editor...

Big news last week when the Securities and Exchange Commission released its latest money market fund reforms. They were widely anticipated but looked slightly different from what many had been expecting since the proposal was released in 2021 and the market had a chance to comment. The move away from swing pricing and removal of redemption gates were welcomed by fund boards and counsel, but the ICI and others criticized the SEC for introducing mandatory fees along with strict liquidity requirements and for not re-proposing the rule and allowing for comment. Read all about what's in store for boards in our story.

In the legal realm, defendants in the SEC's first-ever case related to the liquidity risk management rule have filed motions to dismiss in which they called the regulator's charges "fatally flawed" and challenged the validity of the 2016 rule. The two independent directors, represented by Stradley Ronon, filed their own motion separate from that of the adviser and its two officers, represented by Bond, Schoeneck & King. This is one to watch (and we're doing just that). 

Another interesting tidbit recently was a letter sent to BlackRock Funds directors by 15 Republican state attorneys general. The group questioned the board's independence, as well as its ability to carry out its duties and identify conflicts of interest at the adviser—particularly in the context of ESG investing. The group of AGs addressed a number of concerns and presented a list of questions it wants the board members to answer by Aug. 7. No word on whether the board, or adviser, will respond to the letter. It is definitely interesting reading.

Finally, we spoke with Neuberger Berman Funds Chair Tom Seip about the board's recent recruitment of two new independent directors. He provided detail on the board's thinking behind succession planning, recruitment, board diversity, and more. Don't miss this interesting profile in our A Seat at the Table section. And if you're catching up, be sure to download the latest monthly PDF, take a look at our recent story on CCO compensation, and check out the summer reading list. 

For now,

Hillary Jackson, founding editor