SEC rule upends process for shareholder reports (Fund Directions)

The SEC’s rule requiring tailored shareholder reports for mutual funds and ETFs has created a number of extra steps for advisers to these funds. Fund CCOs are finding the rule’s requirement to make shareholder reports more useful for retail investors has created more compliance burdens than expected while increasing costs. Difficulties arise from the amount of effort necessary to rewrite and redesign reports to comply with the concise and visually engaging format defined in the…

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Lack of uniformity throws confusion into ESG regs (IGNITES)

Sets of European regulatory measures dictating how fund managers name ESG funds are causing confusion in determining what guidelines to follow. Regulations proposed by the European Securities and Market Authority (ESMA) and those of the Sustainable Finance Disclosure Regulation (SFDR) lack consistency and flexibility for fund ESG criteria. The regulations would directly impact US fund managers distributing products in the European Union. FrontLine Compliance Founder and President Amy Lynch states that the lack of uniformity…

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Violations of Marketing Rule adding up (AdvisorHub)

There are new enforcement actions against investment advisers for non-compliance with the SEC’s Marketing Rule. In these cases, the SEC focused on the advertisement of hypothetical performance on the firms’ websites that violated the Rule, as well as other false or misleading statements made. Amy Lynch, FrontLine’s Founder and President, has the exclusive comments in the AdvisorHub story detailing the cases brought by the SEC. She explains why investment advisers need to be extra cautious…

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Auditors of funds face scrutiny over conflicts (IGNITES)

These days audit independence rules are posing even greater challenges for fund accounting firms. With only a few large firms handling the majority of fund audits, maintaining full independence can be tripped up when other services occur at the same time. One firm, PwC, was recently fined by the Public Company Accounting Oversight Board (PCAOB) for violating independence rules by auditing a technology company while also seeking a joint venture with it. With exclusive comments,…

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Funds with less to fear from SEC, now fall under new rules (FundFire)

Private fund managers with funds currently exempt from certain compliance requirements could have exposure to new rules ahead. This includes private real estate funds, which would likely have new compliance obligations under several SEC rules recently adopted, depending on their structure. Amy Lynch, FrontLine’s Founder and President, explains how the private fund disclosure rules would impose new reporting requirements on real estate managers. With the lead comments, she states that the impact on private real…

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