Sidley Releases Second Half of Interview with MFDF President Carolyn McPhillips

In an interview with Sidley Austin’s Jay Baris, MFDF President Carolyn McPhillips recently discussed the 100^th anniversary of the mutual fund and detailed the important oversight function independent directors have within the registered investment company space. This portion of the podcast focused on how increased rulemaking from the Securities and Exchange Commission (SEC) is impacting fund directors. Ms. McPhillips noted that directors have exercised oversight of advisers’ cybersecurity plans for some time now, and the proposed rule, if finalized, will be an extension of that current responsibility. On swing pricing, Ms. McPhillips noted an overwhelming number of industry participants opposed the SEC’s proposal and noted that the reasoning for the proposal lacked a clear connection to the problem the SEC attempted to solve for and would confuse investors who are used to transacting at NAV. She also highlighted how shareholders would be harmed through the implementation of a hard close which would hit individuals around the country differently. The conversation also touched on the role of the Chief Compliance Officer and the Board’s oversight of fund compliance as well as key questions for boards to consider as they evaluate CCO compensation.

Click here to listen to the Mutual Fund Minute podcast with Carolyn McPhillips.
Click here to listen to the first half of Carolyn’s interview with Jay.