Pinnacle Advisors, fund trustees accused of liquidity rule violations by US SEC
( May 5, 2023, 19:16 GMT | Official Statement) -- MLex Summary: Pinnacle Advisors was accused by the US Securities and Exchange Commission of aiding and abetting liquidity rule violations by a mutual fund it advised and whose liquidity risk management program it administered. The SEC also charged the fund’s two independent trustees and two officers of both Pinnacle Advisors and of the fund it advised with aiding and abetting violations by the fund. A third trustee agreed to settle charges that he caused and willfully counseled the fund’s violations. The action is the first-ever case enforcing the rule, which prohibits mutual funds from investing more than 15 percent of their net assets in illiquid investments, requires funds to take certain prompt remedial steps if they hold illiquid investments above this percentage limit, and requires funds to adopt a liquidity risk management program to assess their liquidity risk.Statement and documents follow below:...
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