The following are summaries of key developments in the investment management industry. To read the full articles on these and other topics, please click here.

DOL Finalized Conflict of Interest Rule

The U.S. Department of Labor (DOL) published its long-awaited conflict of interest final rules (the Final Rules) revising the standards for becoming a fiduciary to retirement plans under the Employee Retirement Income Security Act of 1974 (ERISA), and to individual retirement accounts (IRAs) under the Internal Revenue Code of 1986 (the Code). The Final Rules, published April 8, 2016, were based on a proposal by DOL made in April 20, 2015 (the Proposed Rule). The DOL also adopted certain other exemptions, including the Best Interest Contract Exemption (BIC Exemption), a class exemption for allowing principal transactions in certain debt securities, and amendments to existing exemptions allowing fiduciaries to receive compensation in connection with certain securities transactions.

SEC's Chair White Speaks on Role of Fund Boards

Mary Jo White, Chair of the Securities and Exchange Commission (SEC), spoke about the role of mutual fund directors, particularly independent directors, in light of recent developments in the fund industry. She made her remarks to a group gathered at a conference of the Mutual Fund Directors Forum on March 29, 2016.

Chair White addressed the historical evolution of the role of independent directors of mutual funds, and then focused on the role of fund directors in assessing more recent risks in the industry. She also discussed recent SEC enforcement actions against fund directors.

To learn more about these developments and other investment management news, please contact a member of the Ballard Spahr Investment Management Group or the attorney with whom you regularly work.


Copyright © 2016 by Ballard Spahr LLP.
www.ballardspahr.com
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.


Related Practice