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

Amy Lynch, Founder and President - FrontLine Compliance
Amy Lynch, Founder and President – FrontLine Compliance

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 Lynch, explains that there is no legal obligation for an investment consultant to publicly disclose an SEC investigation until the case is settled and it becomes an official record. However, Ms. Lynch notes that a firm may feel obligated to mention it to a client if it believes the case will be settled soon. See FundFire (subscription required), “Aon Consulting Unit Faces SEC Probe”