7.31.2008 The SEC published proposed guidelines (“Guidelines”) for mutual fund directors overseeing the portfolio trading practices of an investment adviser to a mutual fund. The Guidelines address the board of directors’ review of the best execution obligations of the mutual fund’s investment adviser and soft dollar arrangements. In the proposing release, the SEC also discussed how directors should consider brokerage and soft dollars in their annual “15(c) review” of investment advisory contracts. In addition, the SEC requested comments on whether to propose that investment advisers be required to create a new disclosure document addressing the use of client brokerage arrangements.
Click http://www.sec.gov/rules/proposed/2008/34-58264.pdf for a copy of the release.
Click here for a copy of the Sutherland legal alert about the guidelines.