News

January 16, 2024

Morgan Lewis plans to host a series covering the global influence of Environmental, Social, and Governance (ESG) considerations by regulators. The five-part series will focus on varying global approaches to ESG regulation including the United States, Europe, Africa & the Middle East, and Asia.

January 11, 2024

Ropes & Gray discusses ESG-related updates to the Glass Lewis 2024 U.S. Benchmark Policy Guidelines. The first part of the series discusses changes relating to board oversight of ESG matters; while the second part of the series discusses amendments relating to board diversity.

January 10, 2024

The Securities and Exchange Commission (SEC) announced that Credit Suisse Securities and two other affiliated entities agreed to a settlement on charges that they provided “prohibited underwriting and advising services to mutual funds.”

January 9, 2024

The Financial Stability Oversight Council (FSOC) released its annual report highlighting its areas of focus in 2023, financial market and regulatory developments, and potential emerging threats to U.S. financial stability. At the meeting, Securities and Exchange Commission Chair Gary Gensler noted, “[w]e continue work regarding proposals on open-end fund liquidity management, including work with bank regulators on potential similar rules for collective investment funds.”

January 8, 2024

EY plans to host a webinar titled “Credit Funds: Valuation," which will explore how alternative credit valuations may be impacted by higher interest rates for a longer period.

January 4, 2024

The Division of Examinations has initiated a sweep of investment advisers on how AI-based tools are being used by the firms including requests for information on “how firms are managing AI-related conflicts of interest, copies of marketing materials that mention AI, continuity plans around AI system failures, and other documents related to AI.”

January 3, 2024

The study notes, “achieving a high level of board effectiveness relies on the successful implementation of several key imperatives, including board leadership and composition, operational and deliberative processes, board culture and dynamics and performance evaluation and improvement.”

December 21, 2023

A recent report from McKinsey & Company, highlights the benefits and risks of the banking sector integrating generative AI (gen AI) into its business model. The report noted that “two-thirds of senior digital and analytics leaders attending a recent McKinsey forum on gen AI said they believed that the technology will fundamentally change the way they do business.”

December 20, 2023

The Public Company Accounting Oversight Board (PCAOB) announced enforcement settlements with three mainland Chinese and Hong Kong firms in accordance with the Holding Foreign Companies Accountable Act (HFCAA) which was signed into law in December of 2020. The sanctions cover two firms headquartered in mainland China and one in Hong Kong, including two China-based affiliates of PwC and one unaffiliated China-based firm, Shandong Haoxin, along with four individual auditors at that firm.

December 19, 2023

The authors, Peter Cziraki and Adriana Robertson, focus their research on corporate boards, but there are interesting and practical takeaways for fund boards. The study focuses on three patterns: the increase in women with board experience, board size, and the trend toward replacing men with women directors.

December 18, 2023

The two reports include data covering independent director compensation and gender breakdown on boards. The study on gender representation on boards found that females accounted for 26% of independent directors. The study also found a correlation between the number of females on a board and AUM noting, “female directors comprise over 38% of independent directors for boards with more than $100B in AUM.

December 14, 2023

Dear Board Doc Question: AI is evolving rapidly, and it is impacting many aspects of the financial services industry. As a fund Board member, what do I need to know and what factors should I consider with respect to managers and fund service providers that utilize AI?

December 13, 2023

The Securities and Exchange Commission (SEC) announced the release of its 2023 Fall Regulatory Agenda which includes estimated timeframes for specific rulemaking topics. SEC Chair Gary Gensler noted the Commission is “updating our rules to promote the efficiency, integrity, and resiliency of the markets… with an eye toward investors and issuers alike, to ensure the markets work for them and not the other way around.”

December 12, 2023

The Mutual Fund Directors Forum and Deloitte plan to host a webinar titled, “Investment Valuation and Governance: Deloitte's 21st Annual Fair Valuation Pricing Survey.” The panel will discuss insights, emerging, maturing and industry trends and observations from the Deloitte Annual Fair Valuation Survey.

December 11, 2023

The EY panel will look at key risk factors, how to enhance collaboration on generative AI governance and risk management, how to deploy generative AI, and the impact of President Biden’s Executive Order on AI.

December 7, 2023

The Brookings Institution plans to host an event titled, “The Importance of Financial Data Collection and Standardization.” The panelists will discuss industry progress, what gaps need to be filled, and how to ensure data collection practices in the United States are utilized to guard against future financial system collapse.

December 6, 2023

The New York State Department of Financial Services released cybersecurity regulations that amend the state’s 2017 cybersecurity regulations. The amendments require the appointment of a chief information security officer, new risk and vulnerability assessments, and new notification requirements, among other changes.

December 5, 2023

The Mutual Fund Directors Forum and Cohen & Company plan to host a webinar titled, “Unique Oversight Considerations for ETFs.” Rich Wagner, Cohen & Company assurance partner and Jay Laurila, Cohen & Company tax partner, will discuss the unique complexities of board oversight of ETFs.

December 4, 2023

The House Subcommittee on Financial Institutions and Monetary Policy held a hearing entitled, “The Tangled Web of Global Governance: How the Biden Administration is Ceding Authority Over American Financial Regulation.” Subcommittee Chairman Andy Barr (R-KY) argued that regulators are using global governance bodies to appear neutral and to push activist policies such as “greening the financial system” and changing capital buffer requirements.

November 30, 2023

The Securities and Exchange Commission’s Director of Investment Management, William Birdthistle, delivered remarks titled, “Private Equity: Past & Present, Charters & Code," and noted that as a regulator he is “confined by at least two critical constraints of expertise: the plumbing of our financial system and the legal authorities granted by Congress.” He also addressed the rise of assets in private funds, stating “the total universe is approaching par with the $30 trillion of assets in America’s registered investment companies: mutual funds, closed-end funds, money market funds, and exchange-traded funds.”