Retirement Policy and Succession Planning

Fund directors are not subject to any regulatory requirement relating to their retirement, but the topic is sometimes addressed in fund boards’ annual self-assessments. Roughly two-thirds of fund boards have mandatory retirement policies. The ICI Advisory Group on Best Practices for Fund Directors recommended that fund boards adopt policies on the retirement of directors, but declined to specify the type of policy (e.g., term limits) or to recommend a retirement age.

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 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...

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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...

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