Stiff regulatory requirements are changing the way boards of directors look. After Enron and similar scandals, corporate board members have more responsibilities, and they represent a wide variety of fields of expertise.
A new study from financial services firm PFPC demonstrates that even mutual fund boards are changing as the result of today's intense regulatory environment.
According to CNNMoney.com, 40 percent of mutual fund directors surveyed say their boards have grown in number because of increased regulation, and 65 percent say it is more difficult to be a director today than it was in the past. One-third of respondents said they spend more than 50 hours per quarter on director responsibilities.
Turnover among mutual fund board members is also high, the survey found. Twenty-five percent of respondents reported at least one of their colleagues had resigned as a result of the growing regulatory burden or personal liability concerns.
Liability anxiety is a concern for board members, with one in four board respondents noting concern that he/she does not have adequate personal liability insurance. One-third (36 percent) of interested board members and 16 percent of independent directors surveyed have obtained additional personal liability coverage.
Interestingly, though the age and expertise of board members vary, the survey also found that women are a minority on mutual fund boards. Only 20 percent of those surveyed were women.