“Simply stated, when the auditor advised the fund manager of this issue, how could it not reach the required end point to make the client whole? The SEC possibly would have had a different approach if it had done that, potentially saving the firm a large expense and reputational exposure,” said Eaton & Van Winkle partner Paul Lieberman. “Why wouldn’t you ask your general counsel or call outside counsel to get their opinion on the right thing to do in this situation?”
EVW’s Paul Lieberman was quoted in the context of discussing the issue of Equinox’s failure to refund $5.4 million in overcharges to Fund Frontier, even after being made aware of the overcharge by an independent auditor. The quote appeared in the most recent edition of ACA Insights, the official publication of the ACA Compliance Group.
This was one of several topics broached in a thoughtful piece that also touched on the following topics:
- The challenge fund managers face in light of the SEC’s new Liquidity Risk Management proposal.
- Valuation, with a particular focus on the recent controversy between the SEC & the company INVENT.
- Fee Disclosure, starting with the Equinox-Frontier case and continuing into a broader discussion of the failure to disclose overcharges to clients and then issue refunds.
The two sections where Mr. Lieberman is quoted are republished with permission as excerpts.
Click this link below to read more: ACA February Excerpt