Do you know your regulatory responsibility when working with Alternative Mutual Funds?

Monday, June 11th, 2018 and is filed under AI Insight News

As Alternative Mutual Funds evolve, regulators are taking a closer look at these investments.

FINRA has highlighted a need for investor awareness around the unique characteristics and risks in their investor alert, “Alternative Funds Are Not Your Typical Mutual Funds”. Specific considerations include ensuring that investors fully understand the alternative fund’s:

  • Investment structure
  • Strategy risk factors
  • Investment objectives
  • Operating expenses
  • Fund manager
  • Performance history

Additionally, the SEC has implemented liquidity rules for registered investment companies to help improve management of fund liquidity risks. The rules are intended to better protect investors and strengthen securities markets.

Not only is it important to get the resources you need to stay compliant, but also to have a reliable regulatory-compliant documentation system in place. Check out these related resources to support your efforts: