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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New rule requires more transparency on fund fees (IGNITES)

The SEC’s newly amended Disclosure Rule from a 2020 proposal will require mutual funds and ETFs to provide enhanced shareholder reports that are more visually appealing. The funds will also need to promote transparency in presentations of fees and expenses in fund advertising. A primary audience of retail investors is expected to benefit from fund…

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Urgency for private equity on marketing rule compliance (The Wall Street Journal)

The SEC’s November 4th compliance date for its Marketing Rule lies just ahead – and the private equity industry is still grappling with meeting its requirements. Notably, these firms are being challenged by how the rule dictates fund performance should be presented in materials for investors. Amy Lynch, FrontLine’s Founder and President, expects many PE…

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SEC continues trend of cases on 12b-1 fee violations (ThinkAdvisor)

Since ending the voluntary self-reporting by firms during its share class initiative, the SEC continues to bring cases on 12b-1 fees citing share class selection and revenue sharing violations. These appear to be follow-on actions against firms that were previously under investigation during the SEC initiative. One recent case against Cetera Advisors resulted in a…

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Firms should proceed cautiously with testimonials under new rule (InvestmentNews)

Compliance and marketing teams are about to go head-to-head on the SEC’s new Marketing Rule. That’s because the rule now opens the door for greater use of testimonials and endorsements, but it also opens a can of worms for compliance. Commenting for the InvestmentNews cover story, FrontLine’s Founder and President Amy Lynch believes many firms…

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