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Portfolio Pumping by Money Managers
A recent Wall Street Journal article profiles the use of portfolio pumping, especially by unregistered funds, to increase portfolio values at the end of reporting periods. Portfolio pumping is a...
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SEC Lifts Moratorium on Actively-Managed ETFs
The SEC staff is lifting its moratorium on approving exemptive requests for actively-managed ETFs on two conditions: (1) the ETF board periodically reviews and approves the ETF’s use of derivatives...
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SEC Charges Independent Directors With Failure to Oversee Asset Valuation
Yesterday, the SEC announced charges against eight former independent directors of the Regions Morgan Keegan Funds for failing to meet their responsibilities to oversee the valuation of fund assets....
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Aguilar Could Support Money Market Fund Reform
Following the release of an SEC study on money market funds, SEC Commissioner Luis Aguilar told Reuters last week that he is now open to further money market fund reforms. The Commissioner said that...
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Rule Requiring Funds to Register with the CFTC Upheld
Last week, the U.S. District Court for the District of Columbia issued a ruling rejecting the challenge to CFTC rules requiring many funds using futures, swaps, and options to register with the CFTC....
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Federated Points Out Inconsistencies in FSOC MMF Proposal
Federated has asked the Financial Stability Oversight Council (FSOC) to fix inconsistencies in its money market fund proposal by reproposing the rule and restarting the sixty-day comment period....
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SEC Seeks to Re-Try the Bents
The SEC plans to ask a federal judge for a new trial against Bruce Bent Sr. and Bruce Bent II, according to the Wall Street Journal. In November, the Bents were cleared of fraud charges for their...
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IM Director Discusses Division’s Priorities and Initiatives
At a recent speech, Norm Champ, the Director of the SEC Division of Investment Management, discussed the Division’s priorities and initiatives. He announced the recent creation of the Risk and...
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SEC Charges Advisers/PMs for Failing to Disclose Derivative Strategies
On December 19, the SEC announced charges against the investment advisory firms and portfolio managers of a closed-end mutual fund for failing “to adequately inform investors about the fund’s risky...
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Court Refuses to Dismiss Excessive Advisory Fee Case
A federal judge recently refused to dismiss a complaint against Hartford Investment Financial Services alleging excessive investment advisory fees under section 36(b) of the Investment Company Act....
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Roundup: Law Firm Analysis of RMK Director Valuation Case
On December 10, 2012, the SEC filed an order instituting enforcement proceedings against eight former independent directors of the Regions Morgan Keegan Funds, alleging valuation failures. Several...
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Upcoming Forum Webinars
The Forum’s webinar series, Issues and Insights on Your Schedule, covers a wide variety of subjects of interest to fund directors. Each webinar takes place from 2:00 pm to 3:00 pm Eastern. Upcoming...
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CFTC Mutual Fund Rule to be Appealed
The Chamber of Commerce and the ICI are appealing the District Court decision that upheld a CFTC rule requiring many funds that use futures, swaps, and options to register with the CFTC. In upholding...
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Evergreen PM Found to Have Caused Valuation Failures
Former Evergreen portfolio manager, Lisa Premo, has been found by an SEC Administrative Law Judge to have willfully aided and abetted and willfully caused violations of securities laws due to her role...
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RMK Directors File Responses in Enforcement Proceeding
The former Morgan Keegan directors have filed responses in the SEC enforcement proceeding against them. As reported previously, on December 10, 2012, the SEC filed an order instituting enforcement...
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LPL and Four Other Firms Fined for Failing to Deliver Prospectuses
Broker-dealer LPL was fined $400,000 by FINRA for failing to implement and maintain adequate procedures to ensure timely delivery of mutual fund prospectuses to its customers. LPL is required by the...
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New Audit Standard for Communications Between Auditors and Audit Committees
Sullivan & Cromwell has issued a helpful summary of a new auditing standard regarding communications between the audit committee and auditors. They note that while the new standard is directed at...
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SEC Enforcement Director to Leave SEC
The SEC has announced that Enforcement Director Robert Khuzami will leave the agency after nearly four years in the position. During Mr. Khuzami’s tenure, the Enforcement Division filed many actions...
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Index Funds Becoming More Popular
Investors are shifting large amounts of money from actively-managed funds to lower-cost index funds, according to the Wall Street Journal. Through November, investors pulled $119.3 billion from...
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Upcoming Webinar - Managing Financial Intermediaries: Challenges &...
Tomorrow (Tuesday, January 15), the Forum will host a webinar: "Managing Financial Intermediaries: Challenges & Opportunities." The dramatic shift to omnibus over recent years has brought new...
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