Fund Governance Overview

Fund directors have many important responsibilities under the federal securities laws. They approve the fees that funds pay to their advisers, oversee compliance programs, oversee the pricing of fund shares, and more. Fund directors’ duties are somewhat different from those of corporate directors because of the unique structure of funds. Like the directors of a corporate board, fund directors oversee the management and operations of a company (the fund) and have a fiduciary duty to represent the interests of shareholders. Because a fund has no employees and the board relies on the adviser and other service providers to run the fund’s day-to-day operations, the board focuses on the performance and fees of these entities under their respective contracts and monitors potential conflicts of interest. In broad terms, independent directors oversee the management and operations of the fund—and are not involved in its day-to-day management.

FAQs and Resource Centers

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FAQ

Frequently Asked Questions About Mutual Fund Directors

I. Introduction to Mutual Fund Boards and Directors II. Duties and Responsibilities III. Service on...
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Video

Focus on Funds: Latest Research Shows Strong Fund Board Governance

Focus on Funds Latest Research Shows Strong Fund Board Governance New IDC research on fund boards...
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FAQ

Overview of Mutual Fund Governance

A. Fund Boards Follow Strong Governance Practices to Best Serve Shareholders Fund boards are...

Webinars

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Webinar

Board Meeting Mechanics: Practical Issues for Fund Directors

October 3, 2018
12:00 AM UTC
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Webinar

Core Responsibilities of Fund Directors – Session 5: Specific Regulatory Responsibilities

December 10, 2014
12:00 AM UTC
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Webinar

Core Responsibilities of Fund Directors - Session 4: Oversight of Fund Service Providers

September 11, 2014
12:00 AM UTC
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Webinar

Core Responsibilities of Fund Directors - Session 3: Investment Performance Oversight

June 4, 2014
12:00 AM UTC
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Webinar

Core Responsibilities of Fund Directors - Session 2: Investment Advisory Contract Approval

April 20, 2014
12:00 AM UTC
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Webinar

Core Responsibilities of Fund Directors - Session 1: Fundamentals of Fund Director Oversight

February 27, 2014
12:00 AM UTC