Fund Governance

This section contains valuable information about fund governance. In broad terms, the board oversees the management and operations of the fund on behalf of the fund’s shareholders. Directors also have significant and specific responsibilities under the federal securities laws. Among other things, they oversee the performance of the fund, approve the fees paid to the investment adviser for its services, and oversee the fund’s compliance program. A director’s role is to provide oversight and not to be involved in day-to-day management.

Regulatory Matters

IDC Default BG
Comment Letter

IDC Comment Letter on Investment Company Names Rule Proposal

The Independent Directors Council appreciates the opportunity to comment on the Securities and Exchange Commission’s proposal to amend Rule 35d-1 under the Investment Company Act of 1940 (the “Names Rule”). The proposal seeks to expand the universe of funds that are required to adopt...

IDC Default BG
FAQ

Frequently Asked Questions About Mutual Fund Directors

I. Introduction to Mutual Fund Boards and Directors II. Duties and Responsibilities III. Service on a Mutual Fund Board IV. Board Structure and Practices I. Introduction to Mutual Fund Boards and Directors What is a mutual fund and how is it structured? A mutual fund is a pool of...

IDC Default BG
FAQ

Overview of Mutual Fund Governance

A. Fund Boards Follow Strong Governance Practices to Best Serve Shareholders Fund boards are robustly independent. Federal securities laws require that at least 40 percent of the directors on a fund board be “independent,” as defined by SEC rule. In practice, the proportion of...

Videos