Prospectus Auditing and Verification
We verify the accuracy of prospectus fee tables and related
share class text. Our work is guaranteed. We provide attestation letters
from a CPA, CFA, and securities lawyer.
We provide algorithms and methodology to regulators, so we’re
in a unique position to help you. Think there's no risk? Take our quick quiz and then decide.
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.
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. Click here to see how we help you.
Examples of Errors We Helped Correct:
Misleading 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, thus
over-promoting their merit. THIS ERROR EXISTS IN MOST PROSPECTUSES.
Inaccurate 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. Also, A-,
B-, and C-share CDSCs were improperly tolled. The method used was in
conflict with SAI text.
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.