Recent SEC cases naming two prominent firms for violations related to their revenue sharing agreements could be a trend that continues through next year. FrontLine’s Founder and President Amy Lynch states that the recent cases are likely the first in a string that would likely include large, independent advisers, and not just distributors. Ms. Lynch further notes that the SEC is focused on the use of proper disclosures and wants firms to inform clients about each of their compensation arrangements and to avoid using general terms or ambivalent words such as “may.” See IGNITES (subscription required), “SEC Rev-Share Crackdowns Shine New Light on Old Deals”
