Menu

Expect Focus Life, Annuity, and Retirement Solutions, September 2020

SEC Still Cool With Virtual Fund Board Meetings

Life, Annuity, and Retirement Solutions   |   Securities & Investment Companies   |   Financial Services Regulatory   |   Coronavirus   |   September 3, 2020
Download   
Share Page

Mutual fund boards of directors need not meet in person to approve investment advisory contracts, Rule 12b-1 plans, or independent public accountants through December 31.

This SEC relief is conditioned on:

  • A need due to circumstances related to COVID-19;
  • Directors casting votes at a meeting using means of communication by which directors can hear each other simultaneously; and
  • Ratification, at the board’s next in-person meeting, of the action taken.

The SEC originally ordered this relief on March 25 and extended it on June 19. However, the SEC did not extend certain other relief it had granted on March 25.

In extending the relief, the SEC said that “[t]he health and safety of all participants in the securities markets is of paramount importance, and the Commission recognizes that boards of directors of registered management investment companies ... continue to face challenges traveling in order to meet the in-person voting requirements.”

The SEC also said that it “intends to continue to monitor the current situation” and, “if necessary,” further extend the “time period for the relief.”

 


©2020 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.

Subscribe to Publications

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.