Investment Management Partner Discusses Auditor Independence Issues in Fund Directions

An article published by Fund Directions on Nov. 15 discusses mutual fund boards’ recent close reviews of their audit procedures to assess their compliance with the Loan Rule.  These close reviews follow the Securities and Exchange Commission’s drawing attention to investment companies’ potential misinterpretation of the rule. In the article, investment management partner Paulita Pike (Chicago) details that “boards and their audit committees have taken a deep dive into their auditor’s processes. The main focus has been to find out what procedures auditors have in place.” Ms. Pike states that as a result of this “Some funds are choosing to increase the frequency with which they conduct due diligence on their auditor with respect to lending agreements.” “For now, boards are continuing to have conversations with their auditors to determine if procedural changes should be made,” advises Ms. Pike.