Practice

MIAMI - Regulators will soon be keeping careful watch on mutual fund companies' privacy policies in light of the recently-passed Financial Modernization Act and ensuing mergers and acquisitions, said Paul M. Connolly, first vice president and chief executive officer of Federal Reserve Bank of Boston.

Once is not enough when it comes to defining what makes a fund director independent under Maryland law.

The Securities and Exchange Commission is seeking approval of a fiscal year 2001 budget of $422.8 million, an increase of $45.8 million, or 12 percent, over its fiscal year 2000 budget of $377 million. From 1999 to 2000, the budget increased by 11 percent, up from $338.9 million.

A former employee of Dalbar, a mutual fund consulting and research firm based in Boston, has filed a complaint against the firm, its CEO and four of its officers, charging sexual harassment.

MIAMI - The SEC is giving some hints about the fund companies it may examine as part of its special inspection sweep of selected mutual fund companies on their advertising practices.

T. Rowe Price of Baltimore, Md. recently filed with the SEC to offer a new class of shares in an effort to improve distribution of ten funds to variable annuities, defined contribution plans and wrap programs, according to a company spokesperson. The new shares will include a 12b-1 fee of 25 basis points.

The Securities and Exchange Commission voted Feb. 16 to seek comments over the next three months on how to structure international accounting standards that would make it easier to sell mutual funds and securities worldwide.

The SEC may require mutual fund companies and broker/dealers to tell investors more about the special payments fund companies make to broker/dealers for selling funds.

BOSTON - The SEC may ease its original stand on the amount of personal information mutual fund directors must disclose in SEC filings about the business relationships of members of their extended families, according to a high-ranking SEC official.

BOSTON - A U.S. District Court judge has expressed skepticism about a shareholder's claim that Fidelity Investments of Boston had biased its mutual funds' independent directors and charged funds excessive fees.