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Tool & Text Verification and Prospectus Auditing Services
the accuracy of online calculators, prospectus fee tables, and share class
text. We guarantee our work and provide attestation letters from a CPA,
CFA, and securities lawyer.
powers several regulatory tools. So, we are in a unique position to help
you. Think we can't, or that there's no risk? Take our quick quiz and then decide.
Tool and Text Verification Services
mutual fund, savings, retirement, and RMD calculators are flawed. Errors
stem from a naïve understanding of complex issues like LOI, ROA, tax
accrual, tolling, and turnover impact. So,
proper methods are not applied to the tools.
We found and fixed these errors. Clients received a written report,
text and numeric revisions, and truing algorithms.
Inaccurate Mutual Fund
Cost Calculator: The A-share load was forgotten. Also, returns and expenses
were improperly calculated. The results for this share class were all
Inaccurate Share Class
Suitability Calculator: CDSCS were improperly tolled and the B-to-A and C-to-A
conversions were forgotten. The results for these shares were totally
Tool: This was just a basic future value applet that
did not properly compound return. In fact, nothing concerned future
savings, tax deferral, or tax deductions.
prospectuses contain serious math or text errors. As a result, investors
use shares or accounts that are unsuitable for their situation. Boards are
told that all is well. But buried deep in the math, problems persist that
compromise the document. Here are actual examples:
Tax Text: Descriptions
of taxation were wrong for several share classes. The document did not
describe accurately that each share carries a different tax burden. This omission
led readers to underestimate the burden on institutional shares and, thus,
over-promote their merit. THIS ERROR EXISTS IN MOST PROSPECTUSES.
Fee Table: The B-to-A “flip” was forgotten. So,
displayed costs were far too high. The share looked uncompetitive. In
reality, it was often best for small trades.
returns were not properly linked. Summary results in the table were
entirely wrong in several prospectuses.
Transposed Text: Stock and bond pay
scales were transposed in 25 prospectuses. Moreover, a sales brochure stated:
“In the long-term A-shares almost always outperform." This was true for the firm's stock funds,
but not its bond funds.
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. As
needed, we suggest text, numeric, and/or policy changes.
The aim is to
a) Conflicts of interest exist at the advisor, B/D, or fund
b) Fee and performance tables are accurate and consistent with
SAI text; and if
c) Textual rationales per suitability are consistent with the
math; and if
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