Investment Company Notebook

Practical insight and analysis on the accounting, audit and tax issues impacting investment companies.

BBD Investment Management Group Partner Jim Kaiser Featured in "Ignites" Q&A: Are SOX Challenges Decreasing for Funds?

Are SOX challenges decreasing for Funds? Jim Kaiser, a partner in BBD's Investment Management Group, answers this question for the latest "Your Q&A" column in "Ignites."

Despite the regulator's focus on the Dodd-Frank Act's new and pending regulations, I have not seen the SEC deemphasizing SOX. I believe that complying with 38a-1, SOX and new regulations does present a strain for small and midsize firms. One of the ways that small firms can combat this is to launch their fund via a shared trust. Under this model, funds from different advisors operate as separate series of the same trust. This allows them to share certain overhead costs, such as compliance. We have seen this model grow in popularity in recent years.

The full column is available to "Ignites" subscribers on the publication's Web site.