Mutual Fund Directors: Governance Changes Proposed for Independent Directors in the U.S.
2 Pages Posted: 25 Apr 2000 Last revised: 20 Nov 2012
Date Written: November 17, 2012
Mutual fund assets have climbed to over $6 billion in the US passing up Bank Deposits. While banks have over 14,000 regulators mutual funds have less than 500. The most effective and efficient way to improve Mutual Fund Governance is to strengthen the Independent Directors on mutual fund boards.
The author proposes an independent CFA (Chartered Financial Analyst) with no ties to other board members be put on each board to monitor fees, performance and risk.
We cannot afford to wait for the next market downfall to make changes in the way mutual funds are governed.
JEL Classification: G3, C1
Suggested Citation: Suggested Citation