UpFront » December 2021

The inability of a large firm to preserve and oversee employee business discussions on personal devices resulted in regulatory fines – and is now serving as a warning for the rest of the industry. The case against JP Morgan Chase & Co. that culminated in a $200 million combined total fine (SEC and CFTC) showed the firm failed to follow it’s record-keeping and communication policies. Since the use of text messaging and phone apps for…

A recent case brought by the SEC reveals how easily conflicts of interest can exist when responsibilities for a fund’s operation are not adequately divided or managed. The SEC found that Upright Financial, where several small mutual funds are managed by one individual, had repeatedly miscalculated NAVs and failed to operate a fund as a diversified product. FrontLine’s Founder and President Amy Lynch comments that in this case, one person running a mutual fund complex…

With the likelihood of greater ESG regulation in the near future, the industry should expect the SEC to start by requiring certain disclosures. Amy Lynch, FrontLine’s Founder and President, explains that any forthcoming regulations could first be addressed from a disclosure point of view by creating requirements for public companies to standardize reporting of ESG matters. ESG regulations are high on the SEC’s priority list, comments Ms. Lynch, and the new requirements may add clarity…