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I n the wake of the market timing, late trading, and conflict-of-interest-related scandals in the investment company industry, the Securities and Exchange Commission ("SEC" or "Commission") recently adopted rules and rule amendments designed to enhance the governance practices of registered investment companies ("funds"). In an effort to protect shareholders and reduce conflicts of interest between fund boards and fund investment advisers, the SEC has adopted rules that, among other things, increase the required disclosure regarding approval of investment advisory contracts 1 and prescribe the composition of and processes for fund boards. 2 This article addresses the responsibilities fund boards will face in the wake of these new rules.