ComplianceAlert

SEC Risk Alert Issued on Fund Exam Findings

The SEC’s Division of Examinations (formerly known as OCIE) has issued a new Risk Alert (the “Alert”) on findings from fund examinations over the past few years. The Alert covers examination weaknesses and best practices discovered from the Division’s inspections of over 50 fund complexes, 200 funds and close to 100 advisers since late 2018. The fund exams focused on policies and procedures, investor disclosures, and fund governance issues. While the focus of the Alert…

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The crypto regulatory debate: security or not a security (Financial Times)

The immediate popularity of the new bitcoin futures ETF following its debut could shift the regulators into a higher gear. The fastest ETF to achieve $1 billion in assets is a signal that the crypto markets have become too large and are growing too fast, and would therefore demand action by the SEC. But, unlike the ETF, there’s the question of how a crypto asset would be defined under securities regulations and trade within a…

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A regulatory future for the crypto market would bring credibility (CNBC)

The launch of the first bitcoin futures ETF, plus the momentum achieved by the cryptocurrency market the last few years, would seem to indicate a predictable future of regulation coming out of Washington, DC. However, while the SEC approved the new ETF, regulation aimed directly at the crypto market is much less clear. Amy Lynch, FrontLine’s Founder and President, discusses how the view of regulation by crypto advocates is still a point of contention and…

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The “regulatory expert” perspective on greenwashing (New Private Markets)

FrontLine’s Founder and President Amy Lynch was asked to provide her regulatory expert take on identifying greenwashing, when sustainability claims made by money managers are questionable or unsubstantiated. Ms. Lynch comments that a tell-tale sign of greenwashing is when a firm is non-committal and hedges about its ability to deliver on ESG. She explains that phrases such as “we have intended” or “our goal was” allow managers to have an out from meeting ESG objectives…

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New rules on the horizon for SPACs (Law360)

The SEC is working on rule proposals focused on special purpose acquisition companies (SPACs) that will require greater disclosures and transparency for investors. Amy Lynch, FrontLine’s Founder and President, explains that the SEC is honing in on areas where retail investors may be disadvantaged in these transactions versus institutional investors. Ms. Lynch describes areas of particular concern for the SEC, including the dilution of the acquired company’s stock that may occur from equity awarded the…

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