News

November 23, 2022

SEC staff published guidance as an FAQ confirming that, consistent with its fiduciary duty and subject to certain conditions, an investment adviser can incorporate DEI factors when recommending or selecting an investment adviser for its clients. While the guidance does not expressly reference registered funds, according to a Ropes & Gray alert the guidance appears to apply to recommendations involving sub-adviser selection for registered funds that operate in a manager-of-managers structure.

November 22, 2022

This report provides insights into three main areas: how institutional investors evaluate diversity on investing teams; a preference toward more diverse teams when allocating capital; and an analysis on diversity for PE investing teams in terms of gender. The study found institutional investors are increasingly asking for and receiving diversity data from PE firms seeking to raise funds.

November 21, 2022

The SEC announced a final rule requiring amendments to Form N-PX that will “enhance the information mutual funds, exchange-traded funds, and certain other registered funds report about their proxy votes.” The final rule is meant to address fund securities lending activity and the impact of lending shares (and whether or not to recall them) on proxy voting.

November 17, 2022

Ropes & Gray published a report covering recent litigation, regulatory, and legislative updates in the crypto space including sections dedicated to SEC enforcement actions and bankruptcy proceedings.

November 16, 2022

The SEC released a rule proposal that would require advisers to satisfy specific due diligence elements before retaining a service provider that will perform certain advisory services or functions, and to subsequently carry out periodic monitoring of the service provider’s performance.

November 15, 2022

The Forum will host a webinar entitled, “Mutual Fund CCO Compensation: The MPI Annual Survey Update" which details aggregate compensation data received through confidential questionnaires from fund CCOs and other industry executives.

November 14, 2022

The SEC unanimously adopted a final rule on shareholder reports for open-end mutual funds and ETFs registered on Form N-1A, as well as amendments requiring fee comparability in fund advertising for all registered investment companies, including closed-end funds and BDCs. In a statement supporting the final rule, Chair Gensler noted the amendments would, “help investors better understand fund disclosures and help ensure that the information investors receive in investment company advertisements is transparent and balanced.”

November 10, 2022

Deloitte plans to host a virtual roundtable titled “The Mutual Fund Directors’ Exchange.” The program will focus on ESG impacts on the fund industry, board oversight, risk management, developments in board governance, and implementation of the SEC's Fair Valuation rule.

November 9, 2022

In recent remarks, SEC Chair Gary Gensler noted the important role competition plays in financial markets. Gensler highlighted several areas the SEC is focused on regarding competition: fixed income, equity markets, and private markets.

November 8, 2022

K&L Gates plans to host the first in a three-part webinar series entitled “Decoding Digital Assets: Blockchain, Crypto, and NFTs.” The first webinar installment will focus on blockchain technology, uses cases, risks, and response to common questions.

November 7, 2022

The SEC proposed new rules governing liquidity of open-end funds, including mandating swing pricing for most open-end funds (excluding money market funds and ETFs) by a vote of 3 to 2. The proposal would also change how funds classify the liquidity of their investments, institute a “hard close” on fund transactions, and require more detailed public reporting of a fund’s liquidity more frequently.

November 3, 2022

FSOC met at the beginning of October to approve the Council’s “Report on Digital Asset Financial Stability Risks and Regulation” as well as approve the recently created Climate-Related Financial Risk Advisory Committee (CFRAC) and appoint the founding members.

November 2, 2022

Willkie Farr & Gallagher partners will discuss what fund boards should know about the SEC’s examination and enforcement processes.

November 1, 2022

In an article from McKinsey & Co., the author details the rise of Web3 including a primer on what it is, how it is built, what it can and cannot do, the risks, and implications for stakeholders. One interesting adoption of Web3 technology is in the financial services space. The article highlights that when assets sit on the blockchain, instead of going to a depository institution where it is then loaned to borrowers, a smart contract can be employed to lend the users assets from the blockchain once certain, defined criteria are met.

October 31, 2022

The SEC proposed new rules for Treasury market clearinghouses in response to volatility in the Treasury markets during March 2020, as well as other volatile points in 2019 and 2014. The proposed rules would require clearinghouse members to push client trades, often those of other dealers, hedge funds, and principal trading firms through the clearinghouse.

October 27, 2022

SEC Chair Gary Gensler testified in front of the Senate Banking Committee covering issues such as digital assets, ESG, China-based entities, and market structure generally. On ESG disclosure, Gensler stated the SEC is focused on increasing transparency and disclosures related to investor decision-making. Gensler added, “climate-related factors and risks as well as cybersecurity risks both can affect a company’s bottom line and its future, and therefore an investor’s decision to buy, hold or sell a security or how to vote a proxy.”

October 26, 2022

BoardIQ plans to host a webinar entitled, "Audit Committee Succession Planning for All Boards” to discuss the approaches and nuances to audit committee composition and audit chair succession planning. The cost to attend the virtual event is free for BoardIQ subscribers.

October 25, 2022

In our fourth and final post in the Board Recruitment Series, we explore general succession planning. Whether your board has an impending vacancy or not, building a network of potential candidates to tap into improves the likelihood of locating the right people when you need them.

October 24, 2022

Stradley outlines four potential retail fund structures through which a crypto fund might be offered by investment complexes. The guide discusses the regulatory challenges to each option as well as the current landscape.

October 20, 2022

Senator Jack Reed (D-RI) introduced the “Private Markets Transparency and Accountability Act” which would require privately held companies to register with the SEC when they surpass a $700 million valuation or when they exceed $5 billion in revenue with at least 5,000 employees.