Prospectus Auditing and Verification Services
We verify the accuracy of prospectus fee examples and share class text. Our work is guaranteed. We provide attestation letters from a CPA, CFA, and securities lawyer. We provide similar work to the regulators, so we’re uniquely positioned to help you.
Bullet-Proof Your Claims
Most fund prospectuses contain serious math or text errors. They cause investors to use shares or accounts that are unsuitable for their situation. Boards are told that all is well. But buried deep down, problems persist that compromise the document. Liability lingers unnoticed.
For each prospectus, we issue a comprehensive report and three audit letters: CFA attestation related to accuracy, CPA determination letter related to consistency, and a legal opinion concerning relevancy. We also suggest text, numeric, and/or policy changes, if needed.
We found and fixed the errors to the right.
Tax Text Was Misleading
A prospectus’s tax text was wrong for several share classes. It did not describe properly that all shares carry different tax burdens. The merit of institutional shares was over-stated since readers would under-estimate the burden. Sadly, this is still a common industry issue.
Fee Example Was Inaccurate
The B-to-A “flip” was missed so projected costs were high. The share looked unsuitable but was often best for small trades. CDSCs also were improperly tolled. The method used was in conflict with SAI text.
Performance Table Was Inaccurate
Suitability Text Was Transposed
Stock and bond pay scales were transposed in 25 prospectuses. A sales piece also said: “Long-term, A-shares almost always outperform.” This was true for the firm’s stock funds, not its bond funds.
