THE LAW OF MUTUAL FUND SALES
This law course, “The Law of Mutual Fund Sales,” is designed to provide students with a comprehensive understanding of the legal and regulatory framework governing the sale of mutual funds in the United States. The course will cover key aspects of mutual fund sales, including sales practices, advertising and marketing, regulation of mutual fund distributors and salespersons, compliance, and enforcement actions. Students will explore the roles of key regulatory bodies, such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), and examine important legislation and regulations, such as the Securities Act of 1933, the Investment Company Act of 1940, and Regulation Best Interest (Reg BI).
Course Objectives:
By the end of this course, students should be able to:
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Understand the legal framework governing mutual fund sales, including key legislation, regulations, and the roles of regulatory bodies.
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Analyze various mutual fund sales practices, including sales charges, breakpoints, and the delivery of prospectuses.
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Assess the registration requirements, fiduciary duties, and suitability obligations of mutual fund distributors and salespersons.
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Evaluate the rules and regulations surrounding the advertising and marketing of mutual funds, including the use of social media and digital platforms.
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Examine the legal and regulatory implications of sales contests, incentives, and conflicts of interest in mutual fund sales.
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Identify the anti-money laundering (AML) and customer identification program (CIP) requirements applicable to mutual fund sales.
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Discuss the legal issues surrounding insider trading, market manipulation, and mutual funds.
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Understand the importance of compliance, recordkeeping, and reporting in the mutual fund industry.
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Analyze enforcement actions and litigation related to mutual fund sales, including the role of regulators and remedies available to investors.
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Identify emerging trends and challenges in the mutual fund industry, such as the impact of fintech, ESG investing, and the regulation of alternative mutual funds.