UpFront

A recent SEC Risk Alert focuses on how well investment advisers have complied with the Annual Compliance Review requirement of Rule 206(4)-7. Examination results show that many firms have received a failing grade when it comes to adequately completing their annual review according to the rule. Amy Lynch, FrontLine Compliance’s Founder and President, comments in the lead quotes that firms often fail to comply on a number of issues, with the timing of a firm’s…

The SEC has issued an anticipated proposal to revoke Rule 14a-8 governing public companies’ federal requirements on when to include shareholder proposals and their use in proxy materials. In its statement, the SEC is directing companies and their shareholders to rely on what is permitted by their individual state legislation. The SEC also proposed several other proxy-related rule amendments, including removing the requirement for companies to deliver an annual report to shareholders and eliminating the…

The SEC has proposed rescinding the “Pay-to-Play” Rule, meant to prevent investment advisers and fund managers from bribing public officials. The SEC cited the rule’s complex requirements as causing firms to impose blanket prohibitions on employee political contributions, and in turn, impacting their political speech rights. Taking a rigid stance, the SEC has not offered ways to  amend the rule or suggested alternative regulations to prevent inherent conflicts and corruption tied to political contributions. The…

The SEC recently sent a plan it stated was to modernize and improve the Custody Rule to the Office of Management and Budget (OMB). The SEC is seeking to amend the rule to accommodate for crypto assets, with investment advisers and investment companies raising questions about how to hold these assets in compliance with current custody requirements. FrontLine Compliance Founder and President Amy Lynch comments that the SEC’s plan is yet another attempt to deregulate…