Contribution to Book
Chapter 8: Toward Better Mutual Fund Governance
Research Handbook on the Regulation of Mutual Funds
(2018)
Abstract
The chapter contemplates possible ways to improve the governance of mutual funds, focusing specifically on a new model. In this new governance model, multiple funds in a common family are not managed by a single investment adviser but rather by numerous advisers, each managing one or a small number of funds within the organization. The chapter contends that although the new model produces novel risks, there are reasons to believe that it is as least as effective as the traditional model, and may in fact be superior in some ways. Specifically, because the new model produces fewer sources of conflicts of interest than the traditional one, it may strengthen the board’s ability to uphold its fiduciary duties to fund investors.
Keywords
- law,
- mutual funds,
- investment adviser,
- Dodd-Frank Act,
- Investment Company Act of 1940,
- financial services
Disciplines
Publication Date
October 26, 2018
Editor
William A. Birdthistle and John Morley
Publisher
Edward Elgar Publishing
Series
Research Handbooks in Corporate Law and Governance Series
ISBN
9781784715045
DOI
https://doi.org/10.4337/9781784715052.00015
Citation Information
Anita Krug. "Chapter 8: Toward Better Mutual Fund Governance" Research Handbook on the Regulation of Mutual Funds (2018) p. 185 - 204 Available at: http://works.bepress.com/anita-krug/25/