UpFront » February 2021

A new SEC is expected to carry a mandate with an expansive enforcement process that could have a heavy focus on private equity firms. SEC chair nominee Gary Gensler would likely return the regulator to pursuing “message sending” and “headline making” enforcement cases of large fines. Private equity would seem to be an industry with a recent track record of regulatory mishaps that the SEC could rationalize for a larger, ongoing enforcement effort. FrontLine’s Founder…

Investors with an SEC under Biden’s watch should benefit from greater regulatory protections, access to new markets, and disclosures by investment firms to help better measure risks. Areas ripe for SEC action include ESG disclosures, cryptocurrency regulation, proxy rules more favorable to shareholders, and scrutinizing online trading and its associated GameStop like market volatility. Expect the SEC to also revisit Regulation Best Interest (Reg BI) and even some unfinished business from the Dodd-Frank Act. On…

FrontLine Founder and President Amy Lynch recently spoke with TheStreet and its host Corey Goldman. Ms. Lynch was asked about what could be expected from regulators in light of the Congressional hearing questioning some of those involved during the late January-early February chat room fueled trade volatility, including the heads of Robinhood, Citadel and Reddit. Ms. Lynch breaks down the various avenues the SEC and other regulators would likely take, including analyzing the trading and…

When CNN sought an expert to clarify in plain English their breaking news on the GameStop trading saga, they turned to FrontLine’s Amy Lynch. In the interview with CNN Newsroom anchor Brooke Baldwin, Ms. Lynch reviews the trading event and the likely thought process of the regulators. She discusses where the SEC and FINRA would be looking and which types of traders they would have jurisdiction over in their investigations. View the interview, CNN Newsroom …

When it comes to tracking expense allocations at SEC registered private equity firms and other private funds, a recent SEC case and the enduring pandemic shed light on how to avoid regulatory attention in this area. It’s critical that senior management and compliance have appropriate and effective policies and procedures on expense allocations, including oversight of non-reimbursable personal expenses. A 2017-2019 case recently won by the SEC against a former employee of Apollo Management demonstrated…