IDC Quarterly Update, April 2026
Dear Fund Board Community,
In this edition of the IDC Quarterly Update, we will:
- showcase our best-in-class director orientation program, Foundations for Fund Directors®,
- highlight our recent small fund advocacy efforts,
- share helpful resources on alternative assets and insurance considerations for fund independent directors, and
- preview next week's Fund Directors Workshop.
We seek to provide relevant, timely content that updates the independent director community on regulatory developments and industry trends, and spotlights director engagement in IDC programming and events.
Please let me know if you have any feedback on this edition. We’re also interested to hear what you would like to see in future issues of the IDC Quarterly Update.
Thank you for reading,
Tom Kim
Managing Director of the Independent Directors Council
Training the Next Generation of Independent Directors
Earlier this month, we held the Foundations for Fund Directors® orientation program at our office in Washington, DC. The comprehensive two-day program brought together a small group of new and experienced independent directors to engage in collaborative, hands-on learning and discussion about the fundamentals of effective fund governance.
Background: Designed for and taught by directors, the program provides newer and seasoned directors an opportunity to strengthen core skills and stay current on evolving responsibilities.
What’s next: The next Foundations for Fund Directors® will be held virtually December 2–3, 2026. Registration will open soon, so keep a close eye on our website.
SEC Proposal Would Broaden “Small Entity” Thresholds
In March, IDC and ICI submitted comment letters in support of the SEC's proposal to modernize the definitions of “small business” and “small organization” to better address the unique challenges faced by small funds and advisers.
Why it matters: For decades, the SEC’s definition of a “small” entity has lagged behind the reality of today’s market, currently capturing less than 1% of funds and less than 3% of advisers. As compliance obligations have expanded, fixed costs can be more difficult for smaller funds and advisers to absorb.
What IDC said: Small funds and advisers contribute meaningfully to the marketplace by advancing capital formation, driving product innovation, fostering competition, and broadening investor choice.
While we broadly support the intent and direction of the proposal, our comment letter encouraged the SEC to be mindful of the regulatory implications of establishing thresholds for small investment advisers and funds that differ considerably. To avoid inconsistent outcomes, the SEC should clarify in its rulemakings that small entity status would extend to both the fund complex and the investment adviser where either meets the applicable threshold.
Dig deeper: Read the recent ICI Viewpoints blog, Updating What “Small” Means in Today’s Asset Management Industry, for more on why this proposal is such a welcome step.
What’s next: We look forward to the proposal’s prompt adoption. By updating the regulatory framework so it evolves with the industry, the SEC can ensure small funds and advisers remain competitive within the asset management landscape.
Deep Dive: Private Assets in Retail Products
Independent directors from a broad range of fund groups came together on April 14 at IDC’s New York Regional Roundtable to discuss the growing trend of private assets in retail products.
Industry experts offered valuable insights on valuation and private credit markets, sparking lively discussion among the Roundtable participants on the fund board’s role relative to these products.
Go deeper: ICI’s new paper explains how the fund valuation process works for private credit investments, what governance structures support it, and how funds tailor their approach to different portfolios and fund structures. While markets, tools, and methodologies are constantly evolving, the paper provides a comprehensive description of where the industry stands today and points toward where it’s headed.
In case you missed it: Watch a recording of our April 13 webinar, Introduction to Alternative Investments: Interval Funds, for the latest in our alternative investments briefing series. Expert panelists compared the key characteristics of interval funds to more traditional registered funds and discussed the role and responsibilities of fund boards that oversee interval funds. While the webinar is free for IDC members, you must log into the IDC website to access this and other webinar recordings.
Insurance Considerations for Fund Independent Directors
In collaboration with ICI Mutual, IDC has released a white paper delving into the ins and outs of the various core insurance products commonly used in the fund industry.
Go deeper: The paper explains how indemnification and insurance work together to protect fund independent directors from personal financial exposure arising from regulatory investigations, enforcement actions, and civil litigation. It highlights key risks and provides a practical framework of questions for directors to consider when overseeing insurance coverage decisions.
In case you missed it: Watch a recording of the March 19 webinar, Insurance Considerations for Fund Independent Directors, for a broad overview of the white paper. While the webinar is free for IDC members, you must log into the IDC website to access this and other webinar recordings.
Previewing the Fund Directors Workshop
Coming up next week is the Fund Directors Workshop at the JW Marriott in Washington, DC. Held alongside ICI’s Leadership Summit, this three-day conference brings together fund industry executives and independent directors for networking and curated thought leadership sessions.
What to watch: We have a stellar speaker lineup featuring industry CEOs, legislators, regulators, and other thought leaders, including Franklin Templeton CEO Jenny Johnson, National Economic Council Director Kevin Hassett, and CFTC Chairman Michael Selig.
IDC Workshop program highlights include:
- Board Oversight of AI Innovation and Implementation
- Oversight of Liquidity Risk in a Dynamic Market
The bottom line: Register now to secure your spot at the Fund Directors Workshop and book a hotel room. If you’re already registered, you can begin planning and building your schedule in the Attendee Hub.
Contact Us
For more information about IDC, please visit www.idc.org or contact idc@ici.org. If you are experiencing technical problems, please contact webmaster@ici.org.