The Securities and Exchange Commission’s proposals to modernize its regulation of fund use of derivatives and leverage again increase the scope and complexity of the responsibilities of investment company fund directors. If you’re a fund director, here’s what you need to know about the SEC’s proposals and how they could affect you:

What did the SEC propose? -

The SEC proposed rules that would substantively limit the amount of leverage that investment companies could obtain through use of certain types of derivative instruments. Among other things, the rules would broaden the role of directors who oversee funds that make extensive use of derivatives or that invest in certain “complex derivatives.”

Originally published in Fund Board Views on December 14, 2015.