UpFront » August 2024

Trading activity appears to be the focal point for a regulatory and criminal probe into an investment adviser who’s co-chief investment officer has subsequently taken a leave of absence. Western Asset Management, a fixed-income manager and Franklin Templeton subsidiary, has confirmed its co-chief investment officer is also a subject of the investigation. FrontLine Compliance Founder and President Amy Lynch believes that the firm’s co-CIO may be charged with unfair trading practices on certain client accounts…

The SEC’s management processes related to its rulemaking have been likely undergoing an internal review. Amy Lynch, FrontLine’s Founder and President, cites leadership changes that occurred within the SEC’s Investment Management and Examinations divisions as shifting priorities on how to best finalize rules and maintain existing ones. With the SEC’s private fund rules now abated by a federal court decision, Ms. Lynch comments that the SEC is reviewing its impact and will be heavily focused…

The SEC has been interested in pursuing charges against activist investor Carl Icahn and his firm for many years, according to Amy Lynch, FrontLine’s Founder and President. The SEC has now finally settled a case with Icahn and his company, IEP, for $2 million in fines. With quotes in the title, subtitle and within the InvestmentNews story, Ms. Lynch explains that the SEC took advantage of technical violations for an opportunity to pursue a case…

While the SEC’s new private fund rules fell flat following a federal court ruling, it has not stopped the regulator from accumulating cases based on its Marketing Rule that took effect in November 2022. Private fund advisers seem to be in the SEC’s crosshairs when pursuing violations of the Rule’s delineation on the use of performance figures in marketing and advertising materials. A recent case against a hedge fund manager identified numerous deficiencies, including the…