The Company Act's retail investor protection policies do not take sufficiently into account the investment strategy and risk attributes that unconstrained mutual funds share with private funds.
Source quote, verbatim
Company Act's retail investor protection policies do not take these risks sufficiently into account.
Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729
Holds when
Investment Company Act protections as applied to unconstrained mutual funds
Classification
failuresupport: arguedfailure: Statutory protections misaligned with actual fund riskfamily: investor-protection-gapprivate-funds
Related claims
restated_bykaal:claim:2998097-038 The proliferation of unconstrained mutual funds calls into question the effectiveness of retail investor prote...
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