The pros are that there is less red tape. The con is that there is no outside disciple of reporting to an outside agency on a regular basis. Without this discipline, record-keeping may be sloppy and you could find yourself out of compliance if ever audited. As an investor, you should look for fund managers that will report the self-certifying report back to you or engage an independent CPA firm to audit the certification reports. The investor stands to lose more that the manager if the fund is de-certified and tax deferrals are clawed back.