Turnkey Funds Settle SEC Action Over False Disclosures

Law360, New York (May 2, 2013, 3:23 PM EDT) -- Two so-called turnkey mutual funds and their administrator Thursday settled a U.S. Securities and Exchange Commission lawsuit alleging they issued misleading disclosures to investors about how they approved and renewed investment advisory contracts.

The SEC had said the trustees of Northern Lights Fund Trust and the Northern Lights Variable Trust misled investors about how they evaluated and implemented fund advisor fees and issued other misleading disclosures. The funds’ administrator, Gemini Fund Services, also failed to properly oversee the disclosures, the SEC said.

Northern Lights' chief compliance...
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