In this article published by BoardIQ, Amy Doberman discusses a rule that the Securities and Exchange Commission proposed in December addressing the use of derivatives by registered investment companies.
As part of the proposal, boards overseeing funds that invest in more than a limited amount of derivatives would be required to approve a derivatives risk management program and designate a derivatives risk manager. This individual may have another role at the adviser, such as the chief compliance officer, but must be independent of the portfolio management function. Read the full article