Catalyst Capital Advisors Llc

Allegations: SEE RESPONSE TO QUESTION #13 BELOW. Status: Final Sanction Detail: DISGORGEMENT (CATALYST): $8,176,722 + PRE JUDGMENT INTEREST OF $731,759, TOTALING $8,908,481. CIVIL MONETARY PENALTY (CATALYST): $1,300,000. CIVIL MONETARY PENALTY (SZILAGYI): $300,000. ALL PAID IN FULL ON DECEMBER 26, 2019. THE FULL AMOUNT IS CREDITED AS AN OFFSET AGAINST CIVIL MONETARY PENALTIES AND DISGORGEMENT IN THE SAME AMOUNT ORDERED IN THE RELATED CFTC ORDER (DOCKET NO. 20-13, JANUARY 27, 2020). Summary: THE SEC ORDER (THE "SETTLED ORDER") PERTAINS TO THE PERIOD DECEMBER 2016 TO FEBRUARY 2017. THE SETTLED ORDER STATES THAT (I) CERTAIN WRITTEN MATERIALS AND STATEMENTS BY THE PORTFOLIO MANAGER OF THE CATALYST HEDGED FUTURES STRATEGY FUND ("FUND") WERE MISLEADING AND DID NOT REFLECT THE RISK MANAGEMENT PROCESS USED; AND (II) THERE WAS A FAILURE TO SUPERVISE. THE SETTLED ORDER STATES THAT THE FOREGOING CONSTITUTED VIOLATIONS OF THE INVESTMENT ADVISERS ACT AND A RELATED RULE. THE SETTLED ORDER FOLLOWED THE DISMISSAL WITH PREJUDICE IN JUNE 2019 OF A CIVIL CLASS ACTION (DOCKET #2:17-CV-02565; U.S. E.D.N.Y.) REGARDING THE CATALYST HEDGED FUTURES STRATEGY FUND WHICH STATED, AMONG OTHER THINGS, THERE WERE NO ACTIONABLE MISSTATEMENTS OR OMISSIONS. FOR MORE INFORMATION, PLEASE SEE SEC ADMIN. PROC. 3-19674, DATED JANUARY 27, 2020. ALL ASSOCIATED MONETARY SANCTIONS HAVE BEEN PAID IN FULL (SEE QUESTION 12 ABOVE FOR MORE DETAILS).

Allegations: SEE RESPONSE TO QUESTION #13 BELOW. Status: Final Sanction Detail: DISGORGEMENT (CATALYST): $8,176,722 + PRE JUDGMENT INTEREST OF $731,759, TOTALING $8,908,481. CIVIL MONETARY PENALTY (CATALYST): $1,300,000. CIVIL MONETARY PENALTY (SZILAGYI): $300,000. ALL PAID IN FULL ON DECEMBER 26, 2019. THE FULL AMOUNT IS CREDITED AS AN OFFSET AGAINST CIVIL MONETARY PENALTIES AND DISGORGEMENT IN THE SAME AMOUNT ORDERED IN THE RELATED SEC ORDER (ADMINISTRATIVE PROCEEDING 3-19674, JANUARY 27, 2020). Summary: THE CFTC ORDER (THE "SETTLED ORDER") PERTAINS TO THE PERIOD NOVEMBER 2014 TO FEBRUARY 2017. THE SETTLED ORDER STATES THAT (I) CERTAIN MARKETING MATERIALS AND STATEMENTS BY THE PORTFOLIO MANAGER OF THE CATALYST HEDGED FUTURES STRATEGY FUND ("FUND") WERE MISLEADING AND DID NOT REFLECT THE RISK MANAGEMENT PROCESS USED; AND (II) THERE WAS A FAILURE TO SUPERVISE. THE SETTLED ORDER STATES THAT THE FOREGOING CONSTITUTED VIOLATIONS OF THE COMMODITY EXCHANGE ACT AND A RELATED REGULATION. THE SETTLED ORDER FOLLOWED THE DISMISSAL WITH PREJUDICE IN JUNE 2019 OF A CIVIL CLASS ACTION (DOCKET #2:17-CV-02565; U.S. E.D.N.Y.) REGARDING THE CATALYST HEDGED FUTURES STRATEGY FUND WHICH STATED, AMONG OTHER THINGS, THERE WERE NO ACTIONABLE MISREPRESENTATIONS OR OMISSIONS. FOR MORE INFORMATION, PLEASE SEE CFTC DOCKET NO. 20-13, DATED JANUARY 27, 2020. ALL ASSOCIATED MONETARY SANCTIONS HAVE BEEN PAID IN FULL (SEE QUESTION 12 ABOVE FOR MORE DETAILS).

Allegations: WITHOUT ADMITTING OR DENYING ANY LIABILITY, CATALYST AGREED TO THE SETTLED ORDER, WHICH ASSERTS THAT THE ALLOCATION OF CERTAIN LEGAL FEES BETWEEN CATALYST AND THE MUTUAL FUND SERIES TRUST CONSTITUTED A JOINT ARRANGEMENT THAT REQUIRED PRIOR APPROVAL FROM THE SEC, AND ABSENT THAT APPROVAL VIOLATED SECTION 17(D) AND RULE 17D-1 OF THE INVESTMENT COMPANY ACT AND SECTION 206(2) OF THE ADVISERS ACT. THE LEGAL FEES WERE INCURRED IN CONNECTION WITH REGULATORY INQUIRIES AND PRIVATE CIVIL LITIGATION REGARDING LOSSES SUFFERED BY THE CATALYST HEDGED FUTURES STRATEGY FUND ("FUND") BETWEEN DECEMBER 2016 AND FEBRUARY 2017, ALL OF WHICH WERE RESOLVED FOLLOWING A FEDERAL COURT'S DISMISSAL OF ONE OF THE PRIVATE LITIGATIONS IN JUNE 2019 (DOCKET #2:17-CV-02565; U.S. E.D.N.Y.) ON THE GROUNDS THAT THERE WERE NO ACTIONABLE MISREPRESENTATION OR OMISSIONS. THE REGULATORY INQUIRIES AND PRIVATE LITIGATIONS INVOLVED OVERLAPPING FACTS AND LEGAL ISSUES AFFECTING BOTH CATALYST AND THE TRUST; AS A RESULT, THE TRUST'S INSURANCE POLICY INITIALLY COVERED MUCH OF THE LEGAL COSTS INCURRED BY THE TRUST AND CATALYST, WHICH COSTS CATALYST BOOKED AS A LIABILITY AND INTENDED TO PAY BACK FOLLOWING A FINAL ALLOCATION OF COSTS BY THE INSURANCE COMPANY, WHICH ULTIMATELY TOOK MORE THAN FOUR YEARS TO COMPLETE. OVER TIME, CATALYST REPAID SUBSTANTIALLY ALL OF THE LEGAL FEES ALLOCATED TO IT BY THE INSURANCE CARRIER, EXCEPT FOR $183,757, WHICH REPRESENTED THE DIFFERENCE BETWEEN THE INSURER'S FINAL ALLOCATION AND THE TRUST'S EARLIER ALLOCATION; THIS AMOUNT HAS NOW BEEN PAID. FOR MORE INFORMATION, SEE SEC. ADMIN. PROC. 3-21923. Status: Final Sanction Detail: DISGORGEMENT OF $280,902, OF WHICH $183,757 IS OFFSET BY CATALYST'S VOLUNTARY DECEMBER 2023 PAYMENT TO MUTUAL FUND SERIES TRUST; REMAINING AMOUNT OF DISGORGEMENT IS $97,145, REPRESENTING A "TIME VALUE OF MONEY" CALCULATION. ADDITIONALLY, $30,081 OF PREJUDGMENT INTEREST AND A CIVIL MONETARY PENALTY OF $200,000 WERE ORDERED. ALL REMAINING AMOUNTS WERE PAID IN FULL ON MAY 7, 2024 Summary: WITHOUT ADMITTING OR DENYING ANY LIABILITY, CATALYST AGREED TO THE SETTLED ORDER, WHICH ASSERTS THAT THE ALLOCATION OF CERTAIN LEGAL FEES BETWEEN CATALYST AND THE MUTUAL FUND SERIES TRUST CONSTITUTED A JOINT ARRANGEMENT THAT REQUIRED PRIOR APPROVAL FROM THE SEC, AND ABSENT THAT APPROVAL VIOLATED SECTION 17(D) AND RULE 17D-1 OF THE INVESTMENT COMPANY ACT AND SECTION 206(2) OF THE ADVISERS ACT. THE LEGAL FEES WERE INCURRED IN CONNECTION WITH REGULATORY INQUIRIES AND PRIVATE CIVIL LITIGATION REGARDING LOSSES SUFFERED BY THE CATALYST HEDGED FUTURES STRATEGY FUND ("FUND") BETWEEN DECEMBER 2016 AND FEBRUARY 2017, ALL OF WHICH WERE RESOLVED FOLLOWING A FEDERAL COURT'S DISMISSAL OF ONE OF THE PRIVATE LITIGATIONS IN JUNE 2019 (DOCKET #2:17-CV-02565; U.S. E.D.N.Y.) ON THE GROUNDS THAT THERE WERE NO ACTIONABLE MISREPRESENTATION OR OMISSIONS. THE REGULATORY INQUIRIES AND PRIVATE LITIGATIONS INVOLVED OVERLAPPING FACTS AND LEGAL ISSUES AFFECTING BOTH CATALYST AND THE TRUST; AS A RESULT, THE TRUST'S INSURANCE POLICY INITIALLY COVERED MUCH OF THE LEGAL COSTS INCURRED BY THE TRUST AND CATALYST, WHICH COSTS CATALYST BOOKED AS A LIABILITY AND INTENDED TO PAY BACK FOLLOWING A FINAL ALLOCATION OF COSTS BY THE INSURANCE COMPANY, WHICH ULTIMATELY TOOK MORE THAN FOUR YEARS TO COMPLETE. OVER TIME, CATALYST REPAID SUBSTANTIALLY ALL OF THE LEGAL FEES ALLOCATED TO IT BY THE INSURANCE CARRIER, EXCEPT FOR $183,757, WHICH REPRESENTED THE DIFFERENCE BETWEEN THE INSURER'S FINAL ALLOCATION AND THE TRUST'S EARLIER ALLOCATION; THIS AMOUNT HAS NOW BEEN PAID. FOR MORE INFORMATION, SEE SEC. ADMIN. PROC. 3-21923.