UpFront » March 2021

When Gary Gensler takes the helm of the SEC, the agency’s exam focus and rulemaking should quickly look at risks associated with the evolving areas of climate events and digital assets. On the first priority area, exams will likely assess firms’ business continuity and disaster recovery plans, as well as operational and cybersecurity practices. Additionally, Gensler has stated he would pursue rulemaking around climate risk disclosures. On the second area, FrontLine’s Founder and President Amy…

The private equity industry continues to evolve beyond its traditional institutional investor base by seeking to expand access to individuals that meet the definition of an accredited investor. A recent example is the iCapital KKR Private Markets Fund, and a statement by KKR terms the investment opportunity as an avenue to “democratize” access to private equity for the accredited investor. Amy Lynch, FrontLine’s Founder and President, describes this type of offering as a potential win-win…

The recent track record of firms with valuation related deficiencies would indicate that the new SEC valuation rule will trigger even greater enforcement in this area. Couple that with Gary Gensler’s aggressive regulatory style, expect valuation processes at funds to be closely reviewed during SEC exams. FrontLine’s Founder and President, Amy Lynch, provides the lead comments in discussing the Infinity Q case, and how it may be a precursor for what lies ahead, with the…

When the SEC’s new advertising rule becomes effective, all eyes will be on social media activity of firm employees. As the use of social media has proliferated and become intertwined with business practices, the rule seeks to address that concern by requiring firm policies to clearly define how social media is to be used. But, it may require such onerous monitoring that firms may decide to outright ban its use by employees to prevent compliance…