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Academics Find Mutual Fund Borrowing Can Lead to Underperformance
A paper from academics at Syracuse University and University of Southern California law schools raises the question: is mutual fund borrowing within regulatory limits irrelevant, beneficial, or harmful...
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MFDF Webinar: Benchmark(s): A Necessity, a Standard, or an Absolute?
Benchmarks, like world records, are made to be beaten, and yet approximately half of all assets flow to funds that seek to match, rather than exceed a benchmark? JoinPaul Ellenbogen, Vice President, US...
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OCIE Report Highlights Top Industry Practices on Cyber Oversight
The SEC’s Office of Compliance Inspections and Examinations issued examination observations related to cybersecurity to help market participants consider how to enhance their cybersecurity preparedness...
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SEC May Permit Board to Approve Subadviser Change in Non-In Person Meetings
A recent SEC order could allow a fund board to approve new and material amendments to subadviser contracts without complying with the 1940 Act’s in-person meeting requirements. The public may request a...
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Compliance Role, CCO Liability in Spotlight
Growing regulations and digital transformation are among the challenges facing the financial services industry and by extension chief compliance officers, according to a report from consultancy Russell...
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Goodwin Lawyers See “Hardening” D&O Insurance Market
D&O insurance is becoming increasingly challenging to purchase and maintain, write lawyers from Goodwin in a recent client memorandum. Public companies are facing higher costs for insurance...
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MFDF Webinar: The SEC's Derivatives Rule: What Fund Directors Should Know
The SEC proposed rule regulating investment company use of derivatives, if adopted, will be transformative for fund directors. While the rule is not yet final, conventional wisdom is that the final...
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SEC Charges PM and Advisory Firm with Misrepresenting Risk in Mutual Fund
The SEC recently charged Catalyst Capital Advisors and its CEO for misleading investors about the management of risk in a mutual fund. The adviser and the CEO agreed to pay a combined $10.5 million to...
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White House Budget Proposes to Merge PCAOB into SEC
The proposed budget released by the Trump Administration proposes to consolidate the PCAOB’s authorities, responsibilities, and funding streams into the SEC beginning in 2022. The White House estimates...
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In Memoriam: David Ruder, MFDF Founding Chairman and Former SEC Chairman
The MFDF wishes to honor the memory of its founding Chairman David S. Ruder who passed away in Chicago on February 15, 2020 at age 90. David served as the Forum’s chairman from 2002-2010 and was...
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Vanguard Steps into Private Equity
Vanguard recently announced a strategic partnership with adviser HarbourVest to provide qualified investors with access to private equity. “We are entering the private equity market the Vanguard...
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Finra Exam Priorities: Best Execution, Cyber, Tech Governance
Finra recently published its annual examination priorities letter describing the areas of focus for its risk monitoring, surveillance and examination programs in the coming year. Finra oversees...
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Franklin to Acquire Legg Mason in $4.5B Deal
Franklin Templeton announced it will acquire Legg Mason, Inc. for $4.5 billion, a combination that would put Franklin among the industry’s top asset managers with $1.5 trillion in assets under...
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SEC Meets with Audit Firms to Discuss China, Emerging Markets Risk
The SEC released a statement on its continued dialogue with large U.S. audit firms regarding audit quality in China and other emerging markets. The SEC said its latest meetings addressed various...
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Moving Toward Better Board Assessments
Board effectiveness strategies continue to be a challenge for directors of corporations as well as mutual funds. At the MFDF’s upcoming Fund Governance and Regulatory Insights Conference, panelists...
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Dear Board Doc: Our Workload Has Increased, Time to Reconsider Compensation?
The MFDF’s Board Doc is an occasional feature of the Daily News Feed that features questions from our readers. The answers and commentary provided in our responses do not constitute legal advice and...
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The Mechanics, Opportunities, Challenges of Model Portfolios
Model portfolios offer financial advisors a blueprint for asset allocation and fund selection and, according to Morningstar, far more choices than they have in mutual funds. Unlike mutual funds,...
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Global Group Examines How AI is Shaping Financial Services
A recent report jointly conducted by the University of Cambridge Judge Business School and the World Economic Forum presents the findings of a global survey on artificial intelligence in the financial...
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Cyber Insurance Rates Rise with Ransomware Attacks
A Reuters report finds U.S. insurers are boosting cyber-insurance rates by as much as 25% industry sources said. Reuters reported that although there were 6% fewer ransomware attacks in 2019 compared...
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A Refresher on Director Fiduciary Duties from Skadden
Lawyers from Skadden recently published a helpful overview for directors of Delaware-domiciled entities. The lawyers write that their overview can help directors steer clear of fiduciary duty breaches...
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IM Division Extends No-Action Relief on In-Person Meetings Through June 15, 2020
In connection with broader relief from the SEC to public companies dealing with the effects of the Coronavirus, the Division of Investment Management said in a statement that it is actively monitoring...
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MFDF Announces Wyderko’s Successor
The Mutual Fund Directors Forum has announced that Carolyn McPhillips, Senior Counsel of the Forum, will succeed Susan Wyderko as President upon Susan's retirement in June 2020. In a press release,...
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Asset Management Mergers and the Challenges Ahead
As the industry absorbs news of yet another mega merger, commentators are beginning to consider the impact of the deal. A report from Pensions & Investments predicts that the combination of Legg...
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MFDF Webinar: An Update on the SEC's Whistleblower Program
In 2011, the SEC launched a whistleblower program to incentivize individuals to report possible violations or questionable conduct by offering significant financial bounties for information that leads...
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SEC Targets Misleading Fund Names in Request for Comments
The SEC is requesting public comment on its current requirements that restrict the use of potentially misleading fund names. The request seeks feedback on whether the current requirements are effective...
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Draft Bill Calls for Diversity Considerations in Hiring of Subadvisers
At recent Capitol Hill hearings lawmakers discussed diversity in the financial services industry and the need to improve representation from more diverse groups, particularly in banking, and released a...
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K&L Attorneys Suggest Oversight Strategies Amid Virus Crisis
In a recent publication, attorneys from K&L Gates discussed the SEC’s expanded relief for fund board in-person meetings in light of the global impact of COVID-19. The lawyers also listed several...
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Do Board Gender Quotas Affect Firm Value? Academics Explore Effects of...
A paper by Clemson University researchers in the wake of a California law presents evidence on the effects of board gender quotas by examining stock market reactions to the law, direct costs of...
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ACA Compliance Releases Top Risk, Compliance Challenges for 2020
The current heightened risk climate has not erased the risk financial firms have been dealing with in the last few years. A new paper from ACA Compliance notes that the industry has “seen the rise of...
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Members Exchange Expects to Launch in July
MEMX, a new independent stock exchange founded by large brokers including Charles Schwab and E*Trade, says it will launch in July if it obtains regulatory approval from the SEC, which it expects in the...
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