From the Editor...
The Securities and Exchange Commission last week proposed a new rule on fund valuation practices, the first time in 50 years the regulator has formally addressed the matter. Once the rule is finalized, it will replace all the ad hoc guidance that has come out in recent decades. Initial and overall response to the proposal was generally positive, but fund governance professionals continue to analyze the draft, and comments over the next three months are expected to be abundant. We will be examining all aspects of the process for this important rulemaking.
We saw a big move this past weekend when industry lawyers Nathan Greene and Jay Baris moved from Shearman & Sterling to Sidley Austin. In an exclusive, we reported that the two lawyers will continue to work with fund boards at Sidley, where they are partners in the Investment Funds group in New York.
Be sure to read our latest Viewpoints, authored by Todd Spillane of Mercury Compliance and Risk Services. He tackles a number of important aspects of the COVID-19 pandemic that independent fund directors should be thinking about and addressing. It's a very useful piece and well worth the time to read it. We've also got a great Q&A with a couple of veteran fund directors who discuss whether there are parallels to be drawn and/or lessons to be learned from past market crises. Again, worth a read.
In other regulation-related news, Mutual Fund Directors Forum and Independent Directors Council have submitted comment letters on the proposed rule on funds' use of derivatives. The comment period for that proposed rule ends Friday.
Finally, we were sad to see that Investment Company Institute has had to cancel its General Membership Meeting this year. It's always a great opportunity for us to catch up with directors and others from all over the mutual fund industry and participate in a great event at a lovely time of the year to be in DC. We'll miss seeing you all next month, and we're hoping for good health and safety in the coming months so we all can get back out there. Stay well!
Hillary Jackson, founding editor