I pull up the files I need, noticing that I’m still able to navigate theshare drive freely. I batch send to the personal printer I have installed under the longer L wing of my desk. I usually just use it for quick working documents as it’s quite a bit slower than the commercial Xerox beast we have down the hall, but in this case it’s worth the extra minutes.
I also print out the pitch deck for Monday and then assemble a thick file folder with the board presentation on top.
In the hall on my way back to the elevator, I hear my name.
I turn.
Hardwin’s dark eyebrows are pulled together, his jaw tight.
I want badly to slip through the thready seams of the marble floor. “Hi, Hardwin. On my way out.”
“Thought you’d left for the day.” And I thought he’d still be at Vanguard with Terrence. Why is he back so soon? Do I want to know? He strides toward me. Nothing menacing in his posture, but I feel my body vacillating between fight or flight.
“I did. And am leaving now again.” I force myself to chuckle. “Clint loved the gift of the cottage. I assume you had a big part in that.”
He waits a beat before responding. “We thought you deserved a break. Sometimes it’s hard to decide to take proper rest on our own. Always another thing screwing us to our seats. I’m glad we could lend a hand.”
Did he overemphasize the wordlend, as in securities lending?
I keep my breaths regular even as my heart knocks around inside my chest. “True. Thank you. Well, I’ll be on my way. See you on Monday.”
“Wait.” His eyes aren’t on my face but instead on my bag.
Does he know what I’m carrying? What I plan to do?
“Since you’re still here, can I steal you for a quick meeting?” He turns, not waiting for a reply.
I certainly feel stolen.
Hardwin opens the door of a conference room, where two of his lawyers are already seated. I take a seat in the chair closest to the door, but I’m still able to look out the glass wall to the hallway.
The two guys continue their banter about the latest regulatory updates with the SEC. I have nothing to offer. During the discussion, I take furtive glances at Hardwin, but he never looks at me. Just as I’m about to excuse myself, Hardwin lobs a question at me.
“Have you got any insight, Meredith, on any distinctions in the fiduciary responsibilities of the independent fund trustees of a traditional mutual fund and an exchange-traded fund?”
What an odd question. The responsibility of the trustees is to provide independent oversight for all funds. They operate impartially from the fund company. Both ETF and mutual fund trustees have the same responsibility to investors—to ensure that the firm’s profits and goals are not put before investor interests. I can think of a few reasons he could be asking me this question in front of these guys, but the most concerning one is that he knows I’ve been looking into our fiduciary responsibility to our investors and am questioning whether he broke that trust by authoring the contract Alyssa and Temor analyzed.
I stay relaxed in my seat. “Obviously, trustees of both mutual funds and ETFs have the same tenet of mandated responsibility as laid out in the Investment Company Act of 1940.” My tone is casual, maybe even a bit bored. “But perhaps what you are pressing on is that trustees who have sat on only mutual fund boards might not have the same experience with ETFs and therefore can be at risk for missing investor protections. For example, the role of capital market structure.” I keep my gaze leveled at Hardwin. “I can assure you our independent fund trustees are strong in the mechanics of both funds, and we have invested in their continuing education. I am confident our investors are well protected.”
“Good to hear.” His eyes slide away from mine, and I get a quick glance of Candace walking by in the hallway.
The sharks are circling, but are they also inside the cage with me?
“Anything else you think Meredith might find interesting in the world of regulatory updates?”
The guys make confused faces at the papers in front of them. Likely assuming I requested to hear their latest thoughts.
“Well, Meredith, unless you have any questions for us, I’ll see you on Monday.”
I press up too quickly, and my chair races back and hits the window ledge behind me. Second time today. I take a quick breath and position my chair under the table, remembering Candace’s cool presence at dinner.
I speak over Hardwin, who has just begun to ask for a FINRA update. “I do have a question.” All eyes shoot to me, but I have nothing. I gamble that something will come to me as I lift my bag from the floor. When I straighten, the words trip from my mouth. “Have there been any recent cases against firms? Perhaps trustees bringing action against their asset managers?”
Hardwin nods his head slightly.
I might not be someone to discount or control so easily.
“Anything, gentlemen?” Hardwin asks.
