SEC Sanctions Fund Trustees for Inadequate Disclosures and Failure to Follow Compliance Policies

The Securities and Exchange Commission today charged the trustees of two “turnkey” mutual fund trusts with causing untrue or misleading disclosures about their review of the funds’ advisory contracts. The Commission also charged the trustees with failure to follow their own procedures in connection with approving compliance policies and procedures of certain service providers, and charged the funds’ administrator and the firm providing the funds with chief compliance officer (CCO) services with related violations.

The staff said that it “will aggressively enforce investors’ rights to accurate and complete information about [fund trustees’] process and decision-making.” The staff also noted its concerns that “turnkey” funds raise “significant governance concerns.”

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Topics:  Chief Compliance Officers, Compliance, Duty to Disclose, Sanctions, SEC, Trustees

Published In: Business Torts Updates, General Business Updates, Finance & Banking Updates, Securities Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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