SEC Division of Investment Management Director Dalia Blass described the principles guiding the agency's initiatives for and approach to the regulation of mutual fund boards.

In remarks at the IDC 2018 Fund Directors Conference, Ms. Blass outlined the Division's regulatory priorities, which include (i) improving the retail investor experience, (ii) modernizing the regulatory framework and engagement, and (iii) leveraging resources efficiently. She reviewed several recent actions taken by the agency to ensure that investors make informed investment decisions. Ms. Blass highlighted the SEC's:

  • request for comments on modernizing fund disclosure;
  • proposed rule to improve the regulatory framework for exchange-traded funds; and
  • efforts to enhance the use of data analysis in oversight, disclosure and regulatory initiatives.

Ms. Blass also explained SEC decision-making when considering mutual fund boards' responsibilities. This framework, which the SEC developed based on outreach to fund boards, takes into consideration:

  • whether a given regulatory action requires board engagement, and the policy goals of any such involvement;
  • when the staff recommends board involvement, whether it is necessary to require specific board action;
  • whether the prescribed responsibilities are consistent with the board's oversight and policy role; and
  • whether the responsibilities are clear, up to date and consistent with other regulatory requirements.

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