# 2026-16066: SEC Finally Patches 20-Year-Old Fund Governance Court Blunder

2026-16066, Investment Company Governance Technical Amendments, is a Federal Register rule from Securities and Exchange Commission published 2026-08-06, effective 2026-08-06; PRIA reads it as touching household money (as of 2026-08-13).

- Canonical: https://policyrisk.com/federal-register/2026-16066
- As of: 2026-08-13
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-16066
- Title: Investment Company Governance Technical Amendments
- Type: Rule
- Agencies: Securities and Exchange Commission
- Citation: 91 FR 50707
- Published: 2026-08-06
- Effective: 2026-08-06
- Comments close: not stated
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: none
- Last updated: 2026-08-13

## In one line

SEC Finally Patches 20-Year-Old Fund Governance Court Blunder

## Summary

The Securities and Exchange Commission (the "Commission") is adopting technical amendments to a rule under the Investment Company Act of 1940 (the "Investment Company Act") related to registered investment company and business development company (collectively "regulated funds") governance standards to reflect a Federal court's vacatur of certain amendments to those standards that the Commission adopted on July 27, 2004. The court's vacatur of the amendments was effective as of July 6, 2006, and had the legal effect of reverting the fund governance standards to those standards in effect before adoption of the vacated requirements. These technical amendments revise the Code of Federal Regulations (the "CFR") to reflect the court's vacatur.

## Effects PRIA read

- Independence Rule Reverted to Majority: cost, medium. If you invest in a registered investment company or business development company, their board now only needs a simple majority of disinterested directors. The previous requirements that at least 75% of directors be disinterested and that the chairman be a disinterested director have been removed in…
- Other Board Protections Remain Intact: benefit, low. If you invest in regulated funds, several board governance protections remain in effect: disinterested directors must select and nominate other disinterested directors; disinterested directors must meet at least quarterly without interested persons; they must evaluate board performance at least ann…

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## Sources
- [2026-16066 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/06/2026-16066/investment-company-governance-technical-amendments)
- [2026-16066 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-06/pdf/2026-16066.pdf)

## Related
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- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-16066 (as of 2026-08-13).