The ongoing SEC investigation; Amy Lynch discusses obligation to disclose (FundFire – Subscription Req’d)

An ongoing SEC investigation of an investment consultant that began in 2017 has raised questions on the timing of the firm’s disclosure to clients. In this particular case, as discussed in the article, information disclosed by the consultant to its clients has been inconsistent, with only some current clients being notified. Founder and President, Amy…

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FrontLine named to list of top hedge fund compliance experts for 5th consecutive year (Hedge Fund Alert – Subscription Req’d)

The recently released annual listing of compliance consultants again includes FrontLine Compliance as a leading firm offering compliance support and assistance to hedge funds. The listing highlights our successful track record of client SEC Exams resulting in no material findings, our 90 percent plus client renewal rate, and our team of seasoned compliance experts that…

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Amy Lynch on cybersecurity failures revealed in SEC case (IGNITES – Subscription Req’d)

Founder and President Amy Lynch discusses a recent SEC Enforcement action highlighting the importance of cybersecurity policies and processes that are custom-tailored to a firm’s business model, in this case an indie firm. In addition to leveling SafeGuards Rule violations, the SEC charged a firm for the first time under the 2013 Identity Theft Red…

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Timing of investment consultants’ removing managers raises questions; Amy Lynch comments (FundFire – Subscription Req’d)

Whether investment consultants inform clients of status changes with their money managers may well depend on the consultants’ policies or the specific reasons for removal. The consensus is that informing clients of manager line-up changes is a best practice to maintain good relationships. However, there are compliance considerations on the timing of the manager removal…

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When employee misconduct outside the office creates reputational risk for firms; Amy Lynch explains (IGNITES – Subscription Req’d)

A recent SEC settlement with affiliates of a large insurance and asset management firm highlights how an employee, charged with criminal offenses outside the office, can negatively impact their employer during an SEC investigation. During its review of faulty research models relied on by certain investment products offered, the SEC cited the models’ numerous errors…

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