MFDF News Feed

May 17, 2023

Stradley Ronon’s Fintech Practice Group Chair and Derivatives & Commodities Group Co-Chair Susan Gault-Brown recently authored an article published in The Review of Securities & Commodities Regulation. In the article, Gault-Brown offers a framework to interested individuals and fund sponsors that may respond to the SEC staff’s requested feedback on whether a registered fund investing in digital assets could satisfy the 1940 Act’s custody requirements.

May 16, 2023

Tomorrow, Management Practice Inc. (MPI) will present the findings from the most recent "Survey of Mutual Fund Director/Trustee Compensation and Organizational Practices" survey. The report and program will provide aggregate compensation data received through confidential questionnaires, as well as SEC filings submitted by all fund industry complexes.

May 15, 2023

The House Financial Services Committee advanced 15 legislative measures, many on a bipartisan basis. The bills touched on the definition of an accredited investor, disclosure of financial statements by smaller companies, capital formation, and initial public offerings (IPOs), among others. Committee Chairman Patrick McHenry (R-NC) noted in his opening that many of the bills being considered are bipartisan and that “I look forward to moving those to the floor immediately.”

May 11, 2023

The authors of a recent study “Does Board Size Matter” explore whether board size impacts effectiveness and decision-making. The study found “robust evidence that forcing firms to have large boards is detrimental.” The authors explore several explanations for this including, frictions in decision-making, free-riding, coordination problems, and other possible factors.

May 10, 2023

The “Board of Directors Insights Hub” features multiple resources for directors including a new report, panel discussion, and other resources to help boards navigate the cybersecurity space. Also included is a recent report titled, “Perspectives on Security for the Board” covers responsibilities in cyber risk oversight, guidance on how Boards should navigate the cyber threat landscape, and suggestions on how boards should engage on emerging issues surrounding artificial intelligence (AI) and cybersecurity.

May 9, 2023

Management Practice Inc. (MPI) is pleased to announce the 18th annual MPI Survey of Mutual Fund Chief Compliance Officer Compensation and Organizational Practices. MPI plans to complete the report in June, and has set a deadline of May 19, 2023 for all submissions.

May 8, 2023

The Securities and Exchange Commission announced charges against Pinnacle Advisors LLC for “aiding and abetting Liquidity Rule violations by a mutual fund it advised and whose Liquidity Risk Management Program it administered.” In addition, the Commission charged the fund’s two independent trustees and two officers with aiding and abetting Liquidity Rule violations.

May 4, 2023

In the article, “Rethinking bank oversight in the wake of recent banking turmoil” the authors' note that societal changes have changed the pace (such as the impact of social media and instant news) of banking and the regulatory framework has not kept up. The article highlights four recommendations federal regulators should consider in order to keep up with the evolving banking sector.

May 3, 2023

The SEC’s Division of Investment Management recently updated an agenda for the Division's inaugural program entitled, “Conference on Emerging Trends in Asset Management.” Panels will touch on corporate governance, investment complexity, private funds, fund trends, and investment innovation.

May 2, 2023

The Ropes & Gray series focuses on the legal and regulatory developments in the world of data, privacy, and cybersecurity. This episode specifically focuses on tracking cyber criminals in the cryptocurrency space through blockchain technology and the responsibility of reporting breaches.

May 1, 2023

The Financial Stability Oversight Council (FSOC) proposed new rules to assess financial stability risks and amend how non-bank institutions are designated as systemically important. The first proposal would create an analytic framework for financial stability risks, specifically “how the Council identifies, assesses, and addresses potential risks to financial stability, regardless of whether the risk stems from activities or firms.” The second proposal includes “interpretative guidance” on procedures for designating non-bank financial companies which would fall under Federal Reserve supervision and enhanced prudential standards. The comment period for the proposals will be open for 60 days following their publication in the Federal Register.

April 27, 2023

Deloitte recently released a digest for mutual fund directors and investment advisers covering the oversight of alternative investment products. The digest notes fund boards may want to pay particular attention to “the valuation of private equities and private credit investments.” Other key considerations for boards specifically include impact of inputs and assumptions to determine valuation, adequacy of resources, potential conflicts for members of the valuation team, and appropriateness of the model employed.

April 26, 2023

Tomorrow, the Mutual Fund Directors Forum plans to host a webinar entitled “Overview of ETF Product Landscape.” The discussion will include how the ETF product landscape has evolved, from index strategies to a range of more complex product types that exist today. The program will feature insight from Rachel Aguirre and Charles Park of BlackRock, and will be moderated by Jane Carlin, an Independent Trustee of iShares Trust and a Member of the MFDF Board of Directors.

April 25, 2023

Securities and Exchange Commission Chair Gary Gensler testified before members of the House Financial Services Committee as part of the Committee’s oversight process. The hearing itself focused mostly on the Commission’s enforcement in the crypto markets, ESG disclosure proposals, equity market structure proposals, and the Commission’s rapid pace of rulemaking. Many members of the Committee noted the pace of rulemaking and the short comment periods are making it difficult for market participants to keep up. Additionally, several Members of Congress pushed back against the Commission’s open-end fund proposal which would mandate swing pricing, impose a hard close, and change liquidity management provisions for funds.

April 24, 2023

The SEC’s Division of Investment Management announced an inaugural program entitled, “Conference on Emerging Trends in Asset Management.” The event is scheduled for Friday, May 19 at 10:00am ET and will be available to the public through a broadcast on the Division of Investment Management webpage.

April 20, 2023

Ropes & Gray established a platform dedicated to tracking state regulation of ESG investments. The tracker breaks down legislative action state-by-state and includes thought leadership from the Ropes & Gray team.

April 19, 2023

ACA Foreside plans to host a webcast entitled, “Launching an ETF: A Playbook to Success.” The program will cover the regulatory, financial, operational and distribution requirements of exchange-traded funds.

April 18, 2023

The Securities and Exchange Commission (SEC) Office of Minority and Women Inclusion (OMWI) released its 2022 Annual Report to Congress summarizing the Commission’s actions in promoting diversity, equity, inclusion, and accessibility (DEIA). The report notes that inside the Commission, OMWI rolled out a pilot of its DEIA Assessment program and initiated an Employee Affinity Group which included a virtual leadership summit. The Commission continues to work with a network of “Diversity Partners” which includes many women and minority-focused professional associations and educational organizations.

April 17, 2023

Tomorrow, Jay Spinola, partner at Willkie Farr & Gallaher LLP, will provide an overview of interval and tender offer funds, including a discussion of the regulatory framework governing their operations and a comparison to traditional CEFs, mutual funds, ETFs, and private funds.

April 13, 2023

The Securities and Exchange Commission proposed rules that would amend Regulation S-P and require broker-dealers, investment companies, registered investment advisers, and transfer agents to provide notice to individuals impacted by certain types of data breaches that may put them at risk of identity theft or other harm as well as require proper disposal of consumer information.