Joel Wattenbarger Discusses SEC Hypothetical Disclosures in Bloomberg Law
The SEC has several rules regarding hypothetical disclosures, noting that use of the word “may” can often be misleading to investors. This has proven to be a controversial subject among the investment management industry.
Asset management partner Joel Wattenbarger told Bloomberg Law that, “We know it can be a real bugaboo, for lack of a more technical term, to the SEC.”
“Part of challenge, or at times even frustration, as a practitioner is you have to be constantly on guard to, ‘am I giving this particular conflict or this particular matter sufficient weight if I say this ‘may’ occur?’” Joel said.