Question 1: The Securities and Exchange Commission (SEC), November 8, 2019, revoked the licences of Fifty-Three (53) Fund Management Companies. These actions were taken pursuant to Section 122 (2) (b) of the Securities Industry Act, 2016 (Act 929 or "the Act") which authorises SEC to revoke the licence of a market operator in breach of the provisions in the Act. The details of three of the fund managers whose licences have been revoked are presented below. Carefully read through these reasons for withdrawing their licences and answer the following questions: a) Identify all the risks b) How would you manage these risks? SELECTED COMPANIES FRONTLINE CAPITAL ADVISORS LIMITED Frontline Capital Advisors Limited ("Frontline") was incorporated on the 18th July, 2008 and licensed by the SEC as a Fund Manager on October 22, 2009. The SEC has directed Frontline to resolve its regulatory infractions, all to no avail. The Specific issues that led to the revocation of its licence included the following: (i) Failure to honour clients' redemption requests; (ii) Placement of client funds without the requisite standard of professional conduct contrary to Paragraphs, 2, 3, 6 and 13 of Part X of the Commission's Compliance Manual for Broker-Dealers, Investment Advisers and Representatives 2008. Placements include 15% of discretionary funds with CIG Microfinance, and 86% of non-pension funds in illiquid and concentrated investments contrary to basic investment management practice of diversification of risk; (iii)Failure to monitor, maintain and introduce additional liquidity contrary to Regulations 22 and 23 of L.I 1728; and (iv) Inaccurate reporting of its portfolio composition by accruing interest on converted collateral BEIGE CAPITAL ASSET MANAGEMENT LIMITED. Beige Capital Asset Management Limited ("Beige") was incorporated on 4th April 2013 and licensed by the SEC as a Fund Manager on 22nd August, 2013. The SEC has had a number of engagements with Beige including Hearings since 2018 pursuant to section 19 of Act 929, decisions were issued by the SEC against Beige with directives to take steps to comply and resolve its regulatory infractions, all to no avail. The Specific issues that led to the revocation of its licence included the following: (i) Failure to honour client's redemption requests; (ii) Placement of client funds with related parties without proper due diligence and the requisite standard of professional conduct contrary to Paragraphs, 2, 3, 6 and 13 of Part X of the Commission's Compliance Manual for Broker-Dealers, Investment Advisers and