August 2008 Archives
SEC Proposes Guidance for Investment Company Boards of Directors on Adviser Trading Practices
The Securities and Exchange Commission (the SEC) approved proposed guidance (the Proposed Guidance) on July 30 on the duties and responsibilities of investment company boards of directors for a fund adviser’s trading practices. The Proposed Guidance would supplement the SEC’s July 2006 soft dollar interpretive release, and expressly states that it does not impose any new or additional requirements, although fund boards may disagree. Instead, according to the SEC, the Proposed Guidance is intended to assist fund directors in evaluating whether advisers have fulfilled their fiduciary obligations to the fund and have used the fund’s assets in the fund’s best interest. The SEC requested comment on the Proposed Guidance and whether additional disclosure requirements on the use of client commission arrangements are needed. Comments are due on the Proposed Guidance on or before October 1, 2008. >>> continued