Practice

A proxy advisory firm has been compelled to do a 180-degree turn on its recommendations to shareholders of the $166 million Emerging Markets Infrastructure Fund, managed by Credit Suisse Asset Management.

A recent federal court ruling gives plaintiffs' attorneys additional encouragement to bring suits against mutual fund companies.

Lawyers are scheduled to appear in a Boston court Friday to argue over whether James D. McCall, a portfolio manager at Pilgrim Baxter & Associates, should be allowed to leave the firm and join Merrill Lynch & Co.

New York Life Benefit Services does not care how old its customers are.

The SEC last week fined Datek Online Brokerage Services Corp. of Iselin, N.J. $50,000 for failing to segregate customer funds and for books and records violations. Datek's former chief financial officer, Moishe Zelcer, was fined $10,000 in the case, which was filed May 18. Datek and Zelcer agreed to the fine and other sanctions without admitting or denying the SEC's allegations. The SEC said that on 12 occasions this spring, Datek used customer funds to meet the firm's obligations.

Both Credit Suisse Asset Management and Merrill Lynch have chosen 401(k) partners to give Internet-based investment advice and guidance to participants of 401(k) plans for which Merrill and Credit Suisse provide management services.

A raft of Congressional legislation aimed at boosting savings for retirement by Americans has captured the interest of mutual fund companies who see the changes as a potential boon to their assets.

Mutual fund companies have until December 1999 to create simplified prospectuses so they and the SEC's Division of Investment Management have their hands full with that task until at least then.

The Vanguard Group of Valley Forge, Pa., has posted its Y2K preparation filing with the SEC in a section of its website, www.vanguard.com, devoted to the Year 2000.

The SEC wants to divide responsibility between mutual fund boards and custodians for oversight of the foreign companies which keep possession and records of the foreign stocks and bonds mutual funds own.