Regulatory Outlook | 07.21.21
Advisor Group Says SEC Lawsuit Would Sneak-Regulate Mutual Funds
The Financial Services Institute is urging a Pennsylvania federal judge to rule against the SEC in a case it says effectively creates a stricter disclosure rule for mutual fund fees. The Institute said in an amicus brief filed Monday that the SEC is engaging in "rulemaking by enforcement" through its lawsuit against investment advisor Ambassador Advisors. The group claimed the lawsuit seeks to set a precedent requiring advisors who earn fees off certain mutual fund shares to use specific language when alerting clients to lower cost options.
Read the full article on Reuters.