Money Management Executive Latest News

Two former financial advisers at Morgan Stanley face a complaint by the Securities and Exchange Commission for allegedly using market-timing techniques to generate nearly $1 million in fees, according to Reuters.

The Securities and Exchange Commission’s investigations into market manipulation and insider trading are thwarted by the fact it fails to make use of exchanges’ internal audits and searches through investigative referrals from exchanges cannot be handled easily on its computer systems, according to a report from the Government Accountability Office. Sen. Charles Grassley (R-Iowa), the ranking Republican on the Senate Finance Committee, requested the report following an investigation his office conducted last year into a foiled up SEC investigation into possible insider trading at Pequot Capital Management.

Investment research provider Morningstar Inc. is in the final stages of purchasing Hemscott data, media and investor relations website businesses from Ipreo Holdings for an estimated cost of $51.6 million.

According to a poll of 200 advisers that SEI recently conducted, 42% plan to increase client communications, particularly face time, in 2008, making it their No. 1 priority. Ten percent are considering offering investment education to their clients, not only through individual meetings but also through group seminars.

It wasn't long ago that Eliot Spitzer, reveling in the glory of a national media frenzy for having shaken down Wall Street scams with a power not even the entire Securities and Exchange Commission could muster, hinted he might one day run for president of the United States.

Citigroup Inc. will provide emergency support to seven structured-investment vehicles, adding $49 billion in assets and depleting the financial conglomerate’s capital base, according to the Wall Street Journal.The action could relieve the growing anxiety in credit markets that SIVs could be forced into selling assets at reduced prices, but increases pressure on Citigroup, which is facing massive losses after this summer’s global credit crunch.

Total assets for money market mutual funds rose by $4.39 billion to $3.122 trillion in the latest week, according to the Investment Company Institute.

The Investment Company Institute said it welcomes the Department of Labor’s proposed rule to improve disclosure of 401(k) and other employee benefit plans to fiduciaries.

The Financial Industry Regulatory Authority’s free, online service BrokerCheck, which tracks more than 670,000 securities professionals, has come under criticism for the number of customer complaints it erases, according to the New York Times.

Hedge Fund returns spike significantly during the month of December, raising the overall performance and fees managers receive, according to BusinessWeek.