Mutual Funds and Mutual Fund Advisers
Mutual Fund Compliance Solutions
Vigilant provides Outsourced Chief Compliance Officer (“CCO”) for Open-End Mutual Funds, Closed-End Mutual Funds, and Multi-Series Trust. Critical to the effective performance of the CCO function is oversight of Mutual Fund service providers—the Fund Adviser, Fund Accountant, Administration, Custodian, Transfer Agent, Distributor, and Principal Underwriter. A Fund’s Compliance with the Investment Company Act of 1940, the Securities Exchange Act of 1934, the Securities Act of 1933, and other Regulations takes careful analysis and planning—and Vigilant brings both to Funds.
Protect Your Firm With Mutual Fund Compliance Solutions
Any firm that outsources SEC compliance to Vigilant significantly reduces the risk of violating federal and state regulations and incurring costly penalties. Our Mutual Fund consulting solutions can also offer a host of additional benefits including:
- Access to Expertise: Our Mutual Fund consultants stay abreast of the regulatory changes, preventing your firm from committing an unintentional violation.
- Cost Savings: Outsourcing is often more affordable than hiring and maintaining an in-house compliance officer or team. You’ll avoid paying for add-ons like fringe benefits and bonuses, and you won’t incur the costs associated with employee turnover.
- Proactive Approach: Firms may not recognize a compliance violation until it’s too late. Our Mutual Fund consultants have the experience to anticipate potential issues and implement preventive measures.
- Dealing with Regulators: The SEC and other regulatory agencies have strict protocols for responding to inquiries, reporting and filing documents. Our in-depth knowledge of the system and how it works can save time and prevent costly mistakes.
- Scaling Flexibility: As your firm grows, your compliance concerns and needs will likely increase. Vigilant has the resources to scale quickly to keep pace with your evolving requirements.
Stay Within SEC Regulation
Mutual Fund compliance requires investment advisers to abide by four primary securities laws, which are:
- Investment Company Act of 1940: This law regulates the operations and structure of mutual funds. It stipulates that investment firms and advisers maintain detailed records, take appropriate measures to protect portfolio security and file semiannual reports with the Securities and Exchange Commission (SEC).
- Securities Act of 1933: This act mandates the registration of all public securities offerings, including mutual fund shares. It also requires investment firms to provide their clients with a current prospectus describing the fund.
- Securities Exchange Act of 1934: The 1934 Act regulates anyone involved in selling mutual fund shares, including broker-dealers and principal underwriters. It requires them to maintain extensive records, segregate client securities in custodial accounts and file annual reports with the SEC.
- Investment Advisers Act of 1940: This act requires the registration of all mutual fund advisers. It contains numerous anti-fraud provisions to protect investors and mandates that advisers adhere to specific recordkeeping and reporting guidelines.
By Outsourcing Mutual Fund Compliance to Vigilant, you’ll benefit from expert guidance to help you follow these regulations. You’ll gain more peace of mind and have more time to focus on what matters most — serving your clients.
Vigilant’s 5 Step Matrix SystemSM will provide you a guideline of what we have to offer.
- Conduct specialized meeting with Fund Officers and Advisers to determine your specific Compliance needs
- Designate a qualified Professional to serve as your Chief Compliance Officer with a dedicated support team
- Craft your Fund Compliance Manual, Policies and Procedures
- Prepare a Customized Fund Risk Matrix
- Prepare and Maintain Fund Compliance Calendar
- Leverage Vigilant’s experience and relationships with Funds and Service Providers in the Industry to Establish Best In Class Processes
- Conduct Compliance Review and Testing of All Critical Fund Areas
- Review and document Compliance with the SEC’s Required Areas for Funds including:
- Portfolio Management
- Brokerage Arrangements and Best Execution
- Trade Allocations
- Personal Trading by Access Persons
- Pricing
- Safety of Fund Assets
- Marketing and Distribution
- Shareholder Order Processing
- Books and Records
- Information Reporting and Corporate Governance
- Review Fund Adviser Compliance initially and annually with the SEC’s Required Areas of:
- Portfolio Management
- Trading, Best Execution, Allocation & Soft Dollar Usage
- Safety of Assets
- Personal Trading by Access Persons
- Disclosure Accuracy
- Marketing and Advisory Services
- Privacy
- Books & Records
- Conduct On-Site Compliance Due Diligence of:
- Fund Adviser
- Fund Accountant
- Administration
- Custodian
- Transfer Agent
- Distributor
- Principal Underwriter
- Continuously Update Fund Compliance Policies and Procedures, Risk Matrix and Compliance Calendar Based on Changing Regulatory Requirements
- Craft Specialized Policies and Conduct Reviews in the Areas of:
- Cybersecurity
- Liquidity Risk Management
- Derivatives and Section 18(f)
- 22c-2 – Market Timing
- Adviser Soft Dollars
- Adviser Best Execution
- Gifts and Entertainment
- Review of Marketing Materials for Compliance with SEC and FINRA Rule
- Conduct Required Code of Ethics Training for Fund Board Members and Directors
- Train Officers and Employees on SEC Requirements Applicable to Specific Areas
- Educate Board Members regarding new applicable regulatory requirements
- Prepare and Analyze Quarterly Adviser and Service Provider Compliance Questionnaires
- Quarterly Report on Fund Adviser Areas of Note such as:
- Affiliated Transaction
- Soft Dollars Payments
- Regulation Examinations
- Illiquid Securities
- Compliance Violations
- Business Continuity Events
- Cybersecurity Issues
- Prepare Quarterly Chief Compliance Officer Review Reports and Status Memorandums
- Prepare Annual SEC Rule 38a-1 Report
- Attend Board, Audit and Special Committee Meetings
- Review of Required Timely Filings such N-CSR, N-CEN, N-PORT and N-LIQUID
- Conduct Disclosures Controls and Procedures Meetings
- Analyze Material Matters, NAV Errors and other Compliance Issues
- Respond & Provide Documentation related to Fund Auditor Requests
- Respond & Resolve SEC Inquiries and Examination
- Investment Companies made the SEC’s 2020 Examination Priority List
We Have the Knowledge and Skills You Need
At Vigilant, we have the knowledge and skills you need to build a stronger future. With offices in New York, Philadelphia, Boston, Dallas and Washington, D.C., Vigilant is well positioned to help your business create and sustain an effective compliance policy. Contact Vigilant or call 1-888-229-1855 and find out how we can help you protect your interests.
