UpFront » June 2023

Recent management discord at a well-known hedge fund manager has raised questions about whether it required disclosure. The firm, Two Sigma Investments, chose to include details of “a variety of management and governance challenges” that may impact its “ability to achieve client mandates” on its annual Form ADV, Part 2 filing. The disclosure is highly unusual, according to Amy Lynch, FrontLine’s Founder and President. She comments that making the management disagreement public via the filing…

Compliance departments at firms will likely face several new SEC rules that will be issued in their final form within a very short time period. FrontLine’s Founder and President Amy Lynch sees SEC Chairman Gary Gensler following through on his ambitious regulatory agenda to issue a number of new rules this October, according to SEC plans. But this would require CCOs and compliance teams to implement four or five rules adopted by the SEC at…

The SEC is determined to finalize several of the more controversial rules it has proposed, states Amy Lynch, FrontLine Compliance’s Founder and President. In the lead comments for the ThinkAdvisor story, she explains that even with quite a bit of industry pushback, several rules have made it onto the “final list” of the SEC’s recently released regulatory flexibility agenda. These include new or amended rules regarding private funds, custody, outsourcing and enhanced disclosures for ESG.…

The SEC has stepped up its examinations of investment advisers to include an enlarged focus on Marketing Rule-related areas. A recent alert issued by the regulator implies a more expansive approach to reviewing for compliance with the Marketing Rule. Amy Lynch, FrontLine’s Founder and President, explains that current and future exams will now include more reviews of testimonials and endorsements and third-party ratings while continuing to examine early focus areas such as policies and procedures…

While there was time to prepare before the SEC’s new Marketing Rule was effective, since its compliance date over six months ago, much has been learned to assist firms now. Industry and regulatory feedback about compliance with the rule was the subject of a recent NSCP educational seminar. The seminar included FrontLine Compliance Founder and President Amy Lynch as a featured panelist, and her insights on the Marketing Rule are shared within the Private Equity …