The Northern Light Fund Trust and certain members of its current and former trustees as well as an unnamed chief compliance officer have received a “Wells notice” from the U.S. Securities and Exchange Commission.
According to the filing, the Wells notice relates primarily to the process by which certain investment advisory agreements between NLFT (on behalf of a small number of funds in the Trust) and their advisers were approved, and the disclosures regarding the same. Those specific funds involved are no longer offered for sale by the Trust. The Wells notice also alleges separate books and records and compliance violations.
In a statement a spokesperson for the trust said: “We confirm that the Trust has received a Wells Notice from the SEC. We have, and will continue to, cooperate with the SEC to attempt to resolve this matter. The principal allegations regarding advisory contract approvals relates to funds no longer sold by the Trust. As a market leader, we always look to enhance our internal procedures and ensure our processes are fully compliant with all rules and regulations.“