IDC Quarterly Update, July 2026
Dear Fund Board Community,
The Independent Directors Council's mission is to advance excellence in fund governance for the benefit of shareholders. That mission has never been more important. Rapid innovation, intensifying market competition, and technology-driven uncertainty are reshaping the environment in which funds and boards operate—making adaptability, insight, and sound governance essential.
This Quarterly Update highlights how IDC is putting that mission into action. We are working proactively to shape policy and regulatory developments that impact shareholder interests. At the same time, we are expanding education and resources to help independent directors navigate both the evolving asset management landscape and the foundational responsibilities that remain central to effective board oversight.
Thank you for your continued engagement with IDC. We welcome your feedback and partnership as we work together to support strong fund governance in service to shareholders.
Thomas T. Kim
Managing Director
Independent Directors Council
Advocacy on the Hill: A Recap of the Independent Director Fly-in
On July 22 and 23, a group of independent directors met with policymakers in the US House of Representatives and the Senate to voice their support for the GROWTH Act. The meetings took place over two days with members from both sides of the aisle. The group also met with staff from the SEC’s Division of Investment Management to provide the independent director perspective on the importance of fund proxy reform.
In their meetings on Capitol Hill, the independent directors emphasized that unlike investors in individual stocks who do not pay capital gains tax until they sell an investment, mutual fund shareholders who own their funds in brokerage accounts can owe taxes every year on capital gains distributions, even when they automatically reinvest those distributions and do not sell their fund shares. The GROWTH Act would level the playing field for mutual fund shareholders by deferring the tax until the investor sells the shares, redeems them, or passes away.
This issue is one of affordability and affects more than half of American households who invest in mutual funds for college, a home down payment, or other medium- and long-term savings goals. IDC believes the GROWTH Act proposal is easy for investors to understand, will support long-term saving, and better aligns the tax treatment of mutual funds with other long-term investments.
Thank you to the independent directors who joined us in this important advocacy effort!
Fund Proxy Reform
In late June, IDC submitted a comment letter to the SEC with suggestions for modernizing the fund proxy voting system.
The comment letter argues that fund proxy reform is long overdue. The IDC letter approaches the issue from the independent director angle. We noted that the role of independent board oversight—with independent directors acting as the “watchdogs” for shareholder interests—lends strong support for fund proxy reform. More broadly, ICI has also developed significant research and recommendations in support of fund proxy reform, as reflected in its paper, Confronting the Growing Burden of Fund Proxy Campaigns.
In a related development, in May, the SEC Investor Advisory Committee (IAC)—the committee established and authorized by Congress to submit findings and recommendations on investor-related interests to the SEC Commissioners—put forth recommendations that, if adopted, would preserve investor protections while reducing the unnecessary costs, friction, and frustration of the current fund proxy problem.
What’s next: We’re encouraged to see the IAC putting this issue before the SEC Commissioners for serious attention. We hope the SEC swiftly pursues rulemaking, guidance, or other actions to modernize the proxy voting process.
Independent Counsel Roundtable Recap
On July 28, IDC hosted the Independent Counsel Roundtable, which convened approximately 50 independent board counsel for a roundtable conversation at our office to discuss key issues facing fund boards, including ETF developments, tokenization, and governance practices and trends.
Attendees also discussed the current litigation environment. They heard from the attorneys who represented the fund in the FS Credit Opportunities Corp. Supreme Court litigation, in which the Court found that Section 47(b) of the Investment Company Act does not give parties an implied right of action to sue for contract rescission.
Attendees also participated in breakout discussion sessions on AI in the Boardroom. The breakout sessions gave them the opportunity to discuss how fund boards are approaching the topic of AI, notable use cases and risks from a board perspective, and how counsel can effectively advise fund boards on the oversight of AI.
Educational Resources and Content
IDC Learning Hubs: We are pleased to announce the launch of IDC Learning Hubs: resource centers designed to support independent directors with focused, practical information on key topics. Accessible directly from the IDC website through the main navigation menu, each Learning Hub serves as a curated gateway that links to a dedicated page which brings together resources on a specific topic, including webinars and video briefings, papers, IDC comment letters, and other materials. We currently have dedicated hubs for Directors of ETFs and Directors Overseeing Alternative Investments, which provide insights and resources tailored to their evolving responsibilities.
Coming soon: Over the coming months, IDC will expand the platform to include additional Learning Hubs.
Viewpoints blog: ICI President & CEO Eric J. Pan recently penned a blog, Recognizing the Important Role of Fund Boards, that elevates independent directors and the board oversight function. He emphasized how fund boards, and the independent directors that make up most of these boards, are indispensable to regulated funds and the financial security of those who invest in them.
Core Responsibilities course: Register now for our virtual Core Responsibilities of Fund Directors course. Free for IDC members and available for a fee to non-members, Core has been revamped into a self-paced, four-module video program that covers the key duties and responsibilities of fund directors.
Foundations for Fund Directors®: Join us for the next Foundations for Fund Directors® orientation program, which will be held virtually from Wednesday, December 2 through Thursday, December 3. Designed for current independent directors with up to five years of experience, and facilitated by experienced independent directors, Foundations for Fund Directors serves as the definitive orientation program to get directors up to speed on their roles through two days of hands-on exercises in a small group setting. Participation is limited to fund directors of member funds. Please register HERE.
Registration Is Now Live for the Fund Directors Conference
The 2026 Fund Directors Conference is returning to the Fairmont Scottsdale Princess in Scottsdale, Arizona. Register now to secure your spot at the conference and book a hotel room before the hotel block sells out!
New this year: We are offering pre-conference Ask Anything sessions on Monday, October 26, on hot topics:
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Blockchain and tokenization
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Private assets in retail alts
Attendees can submit their questions on these topics to the expert panelists ahead of time—or during the panels, themselves.
Can’t-miss panels: The SEC’s Director of the Division of Investment Management, Brian Daly, will sit down for a fireside chat with IDC’s Managing Director, Thomas Kim, on day one of the conference. Other panels will include:
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Board Use and Oversight of AI
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The Road to Tokenization: Use Cases, Risks, and Readiness
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Private Assets: Key Elements of Board Oversight
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Mid-Term Elections Preview: What to Watch and Why It Matters
See the full conference program, registration information, and more on the IDC website.
Fund Directors Workshop Highlights
Independent directors joined leaders in the asset management industry at IDC’s Fund Directors Workshop, held alongside ICI’s Leadership Summit, in Washington in late May. Attendees heard from expert panelists on AI, the impact of tokenization, and greater retail exposure to broader asset classes. The Fund Directors Workshop offers fund directors a wonderful opportunity to network and stay abreast of industry developments and the broader wave of innovation.
Save the date: Leadership Summit is returning to Washington, May 10 to 12, 2027. Registration for the conference will open in mid-February. Stay tuned to the Events page for more details.
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.