Practice

An SEC administrative law judge has sanctioned two executives of the now defunct Target Income Fund of Glendora, Calif. for their role in filing registration statements on behalf of the fund that failed to include significant facts.

WASHINGTON - The Securities and Exchange Commission will continue to scrutinize the sale of bonus annuities and could issue clarification of or additional rules for the products, according to commission officials.

Claims that the Investment Company Institute is violating federal securities laws are a legal longshot, according to mutual fund industry lawyers.

The majority of 401(k) participants choose lump-sum cash payouts when changing jobs instead of rolling over money into their new employer's plans or IRAs, according to a study by Hewitt Associates, a management consulting firm in Lincolnshire, Ill.

The Investment Company Institute is violating federal securities laws by collecting membership fees from mutual funds while allowing the organization to be dominated by mutual fund advisory firms, according to a lawsuit two shareholders filed against the trade group last week.

The SEC plans to issue the first in a series of legal bulletins on investment adviser advertising practices by Dec. 31.

Most employees changing jobs would rather roll their 401(k) assets into another retirement investment rather than cash out of the plan, according to a recent survey released by American Century Investments of Kansas City, Mo.

WASHINGTON - The SEC should increase its scrutiny and possibly its regulation of investment accounts that may behave like mutual funds but are not required to abide by the same legal requirements as funds, according to the Investment Company Institute.

The SEC has used a low-profile closed-end fund case to make a point about the powers of fund directors and highlight the value of having independent lawyers advise fund directors.

The SEC will not judge whether economies of scale are being passed along to fund shareholders in the form of lower fees in a report the agency expects to issue this summer.