Mutual Fund Governance CFA Charterholders as Independent Directors: a Modest Proposal to Improve Performance and Lower Costs

Abstract

Mutual Funds have become a dominant asset class in the United States. While they are supposed to have independent directors, most are too connected to management and have serious conflicts of interest. This paper proposes having at least 1 qualified independent director on a Mutual Fund board and the best qualification is a CFA Charterholder.

Keywords: Mutual Fund, Governance, Transparency, Accountability, Fees

JEL Classification: g