Self-Assessments

U.S. Securities and Exchange Commission (SEC) rules require virtually all fund boards to conduct an annual self-assessment. The requirement does not specify how a board should conduct the self-assessment or how it should document it. Nor does it prescribe the specific aspects of a board’s operations that must be considered, except in the following two areas:

• The effectiveness of the board’s committee structure; and
• The number of funds overseen by the directors.

According to SEC guidance, the minutes of the board meeting at which the self-assessment is discussed should reflect the substance of the matters covered.