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Survey Finds Decline in Quantity, Quality of Research Post-MiFID II
Reutersis reporting that fewer investment analysts are covering UK-based companies and the quality of their reports has declined since the introduction of MiFID II in January 2018. Reuters cites...
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Delaware Litigation Against Corporate Boards Instructive for Directors
A Delaware court recently found that directors faced potential liability for a breach of their duty of oversight and allowed plaintiffs to proceed on a claim that a corporation’s board of directors was...
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WSJ: Financial Industry Leads S&P 500 in Workforce Diversity
A recent report from a Wall Street Journal study holds good news for diversity and inclusion in the financial industry. Banks and insurance companies are among the most diverse in the S&P 500...
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IM Releases FAQs on Conflicts in Adviser Compensation
The SEC’s Division of Investment Management recently released a series of FAQs regarding certain investment adviser compensation arrangements and disclosure obligations. The FAQs come in the wake of...
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White House Orders Target Non-Binding Guidance
The White House recently issued executive orders aimed at scaling back government agencies’ use of non-binding guidance. One executive order noted that agencies have used non-binding guidance...
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SEC Proposes Rule Amendments on Proxy Voting, Proxy Advisors
The SEC in a 3-2 vote proposed amendments to its rules governing proxy advisors. The SEC wrote that its proposal “aims to enhance the accuracy and transparency of the information that proxy voting...
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Academics Find Misreporting on Bond Funds’ Risky Assets Lead to...
A paper by a group of academics from Notre Dame university, Harvard Business School and the University of Texas at Dallas provides “robust evidence” that bond funds on average report significantly...
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MFDF Webinar: Mutual Fund CCO Compensation: The MPI Annual Survey (2019)
In June, the SEC adopted the long-awaited rulemaking package relating to the standard of conduct broker-dealers and investment advisers owe when providing advice to retail investors. The package...
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SEC Extends Temporary Relief for MiFID II’s Research Provisions
SEC staff issued an extension of an Oct. 26, 2017 no-action letter to assist market participants regarding their U.S.-regulated activities as they seek to comply with the research provisions of MiFID...
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OCIE Risk Alert Flags Deficiencies in Boards’ 15(c) Processes
A Risk Alert from the SEC’s Office of Compliance Inspections and Examinations reflects the most often cited deficiencies and weaknesses observed in nearly 300 fund examinations over a two-year period....
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Reports: Small and Mid-Cap Managers Score over Passive in 2019
The Financial Times is reporting that a surge in performance of small-cap and mid-cap funds may yet show signs of life for active management. Citing data from S&P Global, the FT reports that for...
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Enforcement Actions, Penalties Up in Fiscal Year 2019
The SEC’s Enforcement Division’s annual report for fiscal year 2019 highlights several significant actions and presents the Division’s activities from both a qualitative and quantitative perspective....
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WSJ: Fossil Fuels Common in Top ESG Funds; Study Hits “Incoherence” in ESG...
According to the Wall Street Journal, eight of the 10 biggest U.S. sustainable funds hold positions in oil-and-gas companies and while these investments may be small, the holdings may run contrary to...
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Fintech Bank Charter Blocked; Blockchain Advances in Trade Settlement
A New York District Court in October ruled that the Office of the Comptroller of the Currency lacked the appropriate authority to grant special purpose bank charters to fintech startups that are...
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CAQ Report Sees More Room for Transparency in Audit Committee Disclosures
A report issued jointly by the Center for Audit Quality and Audit Analytics tracks S&P Composite 1500 proxy disclosures to gauge transparency around audit committees’ oversight of their external...
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SEC Re-Proposes Derivatives Regulation; Fund Board Role in Play
The SEC voted to propose a new rule designed to enhance the regulation of the use of derivatives by mutual funds, ETFs and closed-end funds, as well as business development companies. The proposed rule...
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Morningstar Takes Cautious Stance on Revenue Sharing
Revenue sharing – which can create conflicts of interest when a broker recommends one fund over another because of payments received from the adviser -- has been a hot topic both from the regulatory...
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Commissioners Cautious on Non-Transparent ETFs
The SEC recently approved applications from a number of firms to launch non-transparent ETFs, including T. Rowe Price and Fidelity, as widely reported. However, SEC Commissioners Robert Jackson and...
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Highlights from 2019 U.S. Spencer Stuart Board Index
A recent post from consulting firm Spencer Stuart announces The 2019 U.S. Spencer Stuart Board Index, which provides key data on corporate board trends. The report finds, among other things, that...
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SEC Reports 5,200 Whistleblower Tips Received in FY 2019
The SEC’s Office of the Whistleblower recently issued its Whistleblower Program Fiscal Year (FY) 2019 Annual Report to Congress. FY 2019 marked the eighth full year for the Whistleblower Office, and...
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