Fund Board Views Quotes Investment Management Partner Paulita Pike on Potential Alleviation of Fund Board Responsibilities

The fund governance community is largely optimistic that the SEC’s recent move to alleviate some board responsibilities related to affiliated transactions represents the start of what they hope will be a complete modernization of director duties. An article published by Fund Board Views on Oct. 19 titled “Fund governance pros heartened by SEC no-action letter” includes remarks from investment management partner Paulita Pike.

In an Oct. 12 no-action letter, the SEC addressed the work the board is required to perform under certain rules that are also being performed by the compliance function under another clause, stating that it would not recommend enforcement action. “I think [Division of Investment Management Director] Dalia Blass is looking at things with fresh eyes, which is terrific, [and] with an open mind, and I do know that the role of directors and governance is an important topic for her.” So far [Ms.] Blass has been responsive to the fund governance community and thoughtful in her approach to the role of fund directors, Ms. Pike continued, adding “We haven't seen a dynamic this thoughtful for a while.”