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Morningstar Launches Sustainability Rating
Morningstar announced last week that it launched a new Sustainability Rating to help investors assess funds on an environmental, social, and governance (ESG) basis. The firm has ranked 20,000 funds...
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MFDF Webinar: Electronic Board Materials - Best Practices for Directors
Today’s independent fund directors confront a number of substantive fund-related risks from performance to liquidity, compliance, and more. In order to perform their duties in these and many other...
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Banking Committee to Hold Hearing on SEC Nominees
The Senate Banking Committee announced this week that it would hold a hearing on March 15 to consider the nominations of Lisa Fairfax and Hester Peirce to the Securities and Exchange Commission....
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SEC Issues Guidance on Risk Disclosures
The SEC’s Division of Investment Management released new guidance this week to remind “mutual funds, exchange traded funds, and other registered investment companies of the importance to investors of...
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Grim Highlights Oversight Role of Fund Boards
In a recent speech, Director of the SEC’s Division of Investment Management David Grim stated that fund directors are “always at the front of my mind.” Grim emphasized that the role of a fund director...
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Lack of Mutual Fund Demand Hurts Small IPO Issuances
A new paper examines the decline of small IPOs in the late 1990s and suggests that the changing preferences of certain mutual funds may have been the driving factor. The authors note that whereas small...
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SEC Creates Office of Risk and Strategy
The SEC last week announced the creation of the Office of Risk and Strategy within the Office of Compliance Inspections and Examinations. According to the release, “[t]he new office will consolidate...
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Fed Governor: Regulation a “Possible Contributor” to Reduced Fixed-Income...
Federal Reserve Governor Lael Brainard in a recent speech acknowledged “the role of regulation as a possible contributor” to the reduction of liquidity in the fixed income markets. However, she argued...
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CFTC OIG Report Finds Issues in the Office of the Chief Economist
The CFTC’s Office of the Inspector General (OIG) recently released a report highlighting issues of understaffing in the CFTC’s Office of the Chief Economist (OCE), along with perceived censorship and a...
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IM Director to Industry: We Hear You
In a recent speech, Director of the SEC’s Division of Investment Management David Grim outlined the Division’s work, including three significant rule proposals that would affect funds. Calling the...
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IM Director Reflects on Recent Events
Last week, the director of the SEC’s Division of Investment Management, David Grim, outlined the recent rulemakings that would affect funds. In the same speech, he reflected on some recent events that...
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Fund Expenses Hit 20-Year Low
According to new research from the ICI, the expense ratios for equity, bond, and hybrid funds reached 20-year lows in 2015. The research shows that an increase in the assets held in index funds...
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SEC Chair Mary Jo White to Headline MFDF Policy Conference
SEC Chair Mary Jo White will give keynote remarks at the Forum’s Policy Conference on March 29 in Washington, DC. In addition to Chair White, Vanessa Countryman, Chief Counsel of the SEC’s Division of...
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American Funds: Low Fees and PM Ownership Keys to Active Fund Success
Research by American Funds shows that low fees and portfolio manager ownership of the fund increase the likelihood that an actively managed fund will outperform its index. According to InvestmentNews,...
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SEC Sets June Deadline To Determine Status of IEX as a Securities Exchange
The SEC recently set a June 18, 2016 deadline to rule on IEX’s application for registration as a securities exchange. IEX had already consented to an extension of time to rule on its application until...
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FSOC Studying Impact of Liquidity/Redemption Risks on Financial Stability
A brief statement from the FSOC announced that the Council continues to examine the risks related to asset management products and activities. At a telephonic meeting last week, the FSOC discussed...
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SEC Chair Makes Case for Larger SEC Budget
SEC Chair Mary Jo White recently testified before Congress in support of the $1.781 billion 2017 budget request for the SEC. She stated that the amount “is necessary for the SEC to continue to fulfill...
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Questioning Corporate Board Tenure
A recent Wall Street Journal article examined tenure of corporate boards, finding that at least 24% of the largest US companies had the majority of their boards in place for at least 10 years, a...
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Forum Comments on the SEC’s Derivatives Proposal
Last week, the Forum filed a comment letter on the SEC’s derivatives proposal. The proposal would require funds to comply with one of two portfolio limitations on the use of derivatives; segregate...
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Senate Banking Committee to Vote on SEC Commissioner Nominees
Today, the Senate Banking Committee will meet in executive session to vote on the nominees for the two vacant SEC Commissioner positions. The Banking Committee held hearings in March to consider the...
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