Account review backup exposes compliance control failures (Financial Advisor IQ)

Trying to determine what went wrong is central to unraveling a huge logjam of customer accounts awaiting required reviews at a large broker-dealer. The due diligence nightmare occurred at Morgan Stanley, where the accounts were closed or restricted pending further review. In exclusive comments, FrontLine’s Founder and President Amy Lynch points to a likely breakdown…

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Expect very little leeway during marketing rule exams (Financial Advisor IQ)

Firms should prepare for an SEC that will take a hard look at their policies and practices for compliance with the newly effective Marketing Rule. Amy Lynch, FrontLine’s Founder and President, does not expect SEC targeted exams now being rolled out to give firms a lot of wiggle room to get their materials and policies…

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FrontLine once again named a top hedge fund compliance firm (Hedge Fund Alert)

For the 9th consecutive year, the recently released annual listing of compliance consultants includes FrontLine Compliance as a leading firm offering compliance support and advising to hedge funds. The select listing features our remote compliance support services, our specialized forensic testing programs, and our services assisting hedge funds with the SEC’s new Marketing Rule and…

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Amended proxy advisor rule challenged in court (IGNITES)

When the SEC rescinded and then amended the Proxy Advisor Rule’s 2020 version, it claimed to follow a 30-day comment period that was procedurally valid. Now that process is being challenged in a lawsuit filed by advocacy groups, which state the SEC failed to thoroughly solicit and incorporate enough feedback during the comment period. Exclusively…

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Midterm election results could have some impact on Gensler’s agenda (Law360)

What does seem certain is the upcoming midterm election results will continue polarizing each political party’s view of securities regulation. Less certain is the effect Republican control of the House or Senate (or both) would have on SEC Chairman Gary Gensler’s aggressive regulatory agenda. Even with a strong showing by Republicans, the SEC will maintain…

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