Sponsor disassociation from mutual funds allows asset manager to assume sponsorship, subject to board specified regulatory conditions and governance changes. Regulation 7C allows a sponsor to disassociate from an asset management company and its mutual fund subject to Board specified conditions; the existing asset management company may then act as sponsor subject to such conditions. After disassociation, any shareholder's holding must be below ten percent and the asset management company's board must have at least two thirds independent directors. If the asset management company fails to meet these conditions, the dissociated sponsor or a new entity may become the sponsor under Board conditions.