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Investment Company Governance

Jay G. Baris (Partner, Kramer Levin Naftalis & Frankel, LLP, New York, USA; jbaris@kramerlevin.com)
Arielle Warshall (Third‐year student, Fordham University School of Law, and was a summer associate at Kramer Levin Naftalis & Frankel, LLP, New York, USA; warshall@fordham.edu)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 1 April 2004

2088

Abstract

In the wake of the mutual fund scandals involving market timing and late‐day trading, the Securities and Exchange Commission recently issued new investment company governance regulations. The widely debated new rules require most investment companies to ensure that that at least 75% of their directors ‐ and the chairman of the board ‐ be “independent.” The new rules also require most funds to adopt other governance practices, including annual self‐evaluations and meetings in executive session without the presence of fund management. In the adopting release, the SEC also provided guidance on how fund directors should fulfill their fiduciary duties to fund shareholders. The SEC adopted these rules in light of several well publicized enforcement proceedings and anticipation of action by Congress.

Keywords

Citation

Baris, J.G. and Warshall, A. (2004), "Investment Company Governance", Journal of Investment Compliance, Vol. 5 No. 2, pp. 16-22. https://doi.org/10.1108/15285810410636064

Publisher

:

Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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