Practice

Two top executives at Sunpoint Securities, a broker/dealer of Longview, Texas, allegedly diverted up to $25 million from as many as 9,000 clients during a nearly two-year period, the SEC alleged in a lawsuit filed Nov. 19.

The SEC, alleging a portfolio manager stole approximately $5.8. million from the funds he managed, has sued the manager who has already spent seven months in jail on related charges.

Bexil Corp. of New York, the fixed-income closed-end fund, is asking shareholders to allow the fund to make a change in its investment style. The fund wants to change its investment objective so that it can invest as much as 50 percent of its assets in the equities of growth companies, according to a proxy statement the fund filed with the SEC Nov. 15. The fund currently must invest at least 65 percent of its assets in U.S. government securities.

An unusual fight pitting two groups of fund directors against each other is providing the SEC with its first public test of the agency's campaign to strengthen the role of independent fund directors.

Legislation aimed at establishing uniform federal law for electronic commerce and electronic signatures and addressing some concerns of the mutual fund industry, has advanced in Congress.

Olin is campaigning for a proxy vote that would fire Alliance Capital Management of New York as advisor to the Austria Fund, according to an SEC filing.

The Saudi Arabian government's recent decision to allow foreigners to invest in the Saudi stock market through mutual funds probably will not have a lot of U.S. fund companies jumping at the chance to do business there, some industry analysts said.

The fact that retail funds may be sold in variable annuity sub-accounts in the form of funds of funds, has prompted some insurers to seek to include retail funds in other annuities.

CHICAGO - The annuity industry is expecting to receive a formal statement soon from the Internal Revenue Service as to whether partial 1035 exchanges are allowable.

Broker/dealers will be able to have their representatives collect asset-based fees rather than commissions without facing added regulation under a rule proposed by the SEC. If adopted, the new rule will allow registered reps to offer wrap accounts and some other products for which they receive a fee based on assets under management, without being subject to the Investment Advisers Act, the SEC said in a statement.