Nathaniel Segal Authors “Guide to Derivatives Rule 2.0 (and How We Got Here)” in Fund Board Views
Nathaniel Segal, Counsel at Vedder Price and member of the firm’s Investment Services group, recently authored an article in the Viewpoints section of Fund Board Views on board responsibilities under the SEC’s re-proposed fund derivatives rule and guidance in the proposing release that fund directors should be aware of.
In the article, “Guide to Derivatives Rule 2.0 (and How We Got Here),” Mr. Segal offers a brief refresher on the regulatory framework governing funds’ use of derivatives, the notable changes to the board’s role under the re-proposed rule as compared to the 2015 iteration of the rule and the key takeaways for fund directors. He notes that the rule proposal is a significant improvement from version 1.0, but may rival the SEC’s liquidity risk management rule’s sweeping impact on the fund industry, particularly for funds that are unable to qualify for the limited derivatives user exception.
Viewpoints is a regular section of Fund Board Views that features contributed pieces from mutual fund industry and legal professionals, academics and others with an expertise in fund governance issues. To read Mr. Segal’s article in full, please click here.
Vedder Thinking | Articles Nathaniel Segal Authors “Guide to Derivatives Rule 2.0 (and How We Got Here)” in Fund Board Views
Publication
February 11, 2020
Nathaniel Segal, Counsel at Vedder Price and member of the firm’s Investment Services group, recently authored an article in the Viewpoints section of Fund Board Views on board responsibilities under the SEC’s re-proposed fund derivatives rule and guidance in the proposing release that fund directors should be aware of.
In the article, “Guide to Derivatives Rule 2.0 (and How We Got Here),” Mr. Segal offers a brief refresher on the regulatory framework governing funds’ use of derivatives, the notable changes to the board’s role under the re-proposed rule as compared to the 2015 iteration of the rule and the key takeaways for fund directors. He notes that the rule proposal is a significant improvement from version 1.0, but may rival the SEC’s liquidity risk management rule’s sweeping impact on the fund industry, particularly for funds that are unable to qualify for the limited derivatives user exception.
Viewpoints is a regular section of Fund Board Views that features contributed pieces from mutual fund industry and legal professionals, academics and others with an expertise in fund governance issues. To read Mr. Segal’s article in full, please click here.
