With the comment period ending, some are questioning the rationale behind the SEC’s 13F proposal. While a huge compliance and cost burden would be removed from smaller equity managers, Amy Lynch, FrontLine’s Founder and President, sees an over-stretched SEC that cannot keep up with the ever-increasing volume of 13F filings. Aside from alleviating the SEC’s data pileup, public companies are voicing concerns that the higher 13F reporting threshold would significantly reduce transparency into share ownership. Ms. Lynch adds that the SEC may decide to revise or retract the proposal, based on the comments it’s received plus the likelihood of litigation to challenge the new rule. See ETF.com, “Impact Of SEC’s 13F Change Murky” Also, see our ComplianceAlert, “SEC Issues New Guidance and Proposed Amendment”
13F proposal underscores weight of SEC workload (ETF.com)
FrontLine Compliance
