ComplianceAlert

SEC Exams Program Highlights MNPI Concerns

A recent Risk Alert (the “Alert”) issued by the Division of Examinations (“EXAMS”) addressed Staff findings and several areas of concern that the SEC has regarding misuse of Material Non-Public Information (“MNPI”) by registered investment advisers. The Alert came shortly after the SEC’s 2022 Examination Priorities (“Priorities Letter”). While MNPI concerns were not explicitly mentioned…

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Repercussions from cases bolster SEC mandates (FundFire)

The SEC seems poised to expand its focus on private funds even before its new rule proposals are finalized. One way the SEC plans to push forward is by moving on regulatory issues arising from recent cases, namely its charges against Archegos Capital Management. FrontLine’s Founder and President Amy Lynch sees an SEC ready to…

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Crypto manager seeks SEC approval for ETF…again (Financial Times)

In its latest attempt to meet the SEC’s approval, a digital currency asset manager is relying on a legal detail to bolster its chances to create a crypto ETF. However, with the SEC’s current stance that crypto ETFs trade on unregulated platforms with fraud and manipulation concerns, the firm Grayscale and its large crypto investment…

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Are bill-paying services more trouble than they’re worth (BARRON’S)

Investment adviser firms considering bill-paying services for their clients as an added benefit should consider the associated regulatory requirements and security concerns. Amy Lynch, FrontLine’s Founder and President, spoke to Barron’s about the primary ways firms offering these services get into regulatory trouble. Ms. Lynch states that advisers providing bill paying to clients as a…

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SEC share class exams to now take tougher approach (IGNITES)

SEC exams will continue to zero in on firms and fund companies with investors inappropriately placed in high fee share classes. With the SEC’s self-reporting program ending in 2020, FrontLine’s Founder and President Amy Lynch expects that reviews of share classes would now occur in every exam of a mutual fund company, broker-dealer or distributor,…

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