ABSTRACT
This chapter scrutinises mutual fund governance. It attempts to define mutual fund governance and specify its scope, taking into account the unique characteristics of these vehicles. It compares mutual fund governance models in the UK and the US from a comparative structural and institutional perspective. It also examines the agency problems in the mutual fund industry between the self-interests of the fund management and the interests of the fund’s investors (conflict of interest). It explores potential types of conflicts of interest and the regulatory methods of addressing them under existing regulations. It also considers the role of disclosure in the mutual fund governance system, the effectiveness of the voting right, and considers the role of the Financial Conduct Authority in protecting mutual fund investors.
