Investment Management Partner Quoted by Fund Action Concerning the Responsibilities of Directors
A Dec. 19 article in Fund Action
, titled “Boards Examine Market Structure, Trade Execution,” features the insights of investment management partner Brian McCabe
(Boston). According to Mr. McCabe, the increased scrutiny of directors can be attributed to the heightened attention of regulatory authorities, as well as the publication of “Flash Boys: A Wall Street Revolt,” by Michael Lewis, which has drawn attention to the impact of controversial investment practices like high-frequency trading.
Mr. McCabe suggests that directors should be familiar with the processes that are executed by their advisers through brokers, and asserts that “the quality of services, which includes trading, is absolutely within the purview of what boards are overseeing and should be reviewing annually.”