How Industry Changes Could Revamp Board Committee Structures

Recent developments affecting the mutual fund industry have impacted the nature and scope of board oversight responsibilities.

New regulations, including the Securities and Exchange Commission’s liquidity risk management and swing pricing rules, impose new oversight obligations on boards.  The SEC’s recent emphasis on risk management, cybersecurity, and auditor independence requirements has also increased board oversight responsibilities. Developments affecting mutual fund service providers, including increased emphasis on business continuity planning, have the potential to further expand board responsibilities.

Although most boards are well positioned to respond to these developments, all boards should consider whether their current committee structures promote the effective implementation of new and existing oversight obligations.

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