Money Management Executive Latest News

The Securities and Exchange Commission wants the mother of a former Fidelity trader to testify about whether she bought stocks due to information her son provided to her, The Wall Street Journal reports.

Jefferies & Co. and two of its executives settled with the Securities and Exchange Commission on Monday over providing Fidelity mutual fund traders with $2 million worth of illegal gifts and entertainment to secure their trading business.

Twenty-six-year-olds and their grandfathers may not share the same investment philosophies, but there are a few ideas that transcend generations, according to the results of a recent survey published by Eaton Vance.

Investors may be getting a raw deal when investing in index mutual funds through their broker, as they pay a steep "broker penalty." The extra operating costs paid over time for broker-sold load index funds are triple those paid by investors in true no-load mutual funds, according to a study by Zero Alpha Group and Fund Democracy, released during a conference call last week.

The NASD and NYSE Group have agreed to merge their regulatory operations into a single self-regulatory organization that will oversee all U.S. securities broker/dealers. The name of the organization will be determined at a later date and will begin operating in the second quarter of next year.

For fund managers seeking independent research, a new service from The Bank of New York is like online dating.

Mergers and acquisitions (M&As) among investment companies reached a record this year, and the feverish deal making may continue into the new year as the move toward open architecture and globalization drives companies to seek attractive opportunities.

A former fund company president is betting that investors will embrace the ability to predetermine the return on an investment and achieving that return via an online auction site that would pit anonymous investor/bidders against each other with the highest bidder being victorious.

A former worker of Principal Financial Group has reportedly been charged with draining $167,000 from mutual fund accounts, and the Des Moines, Iowa, police last Wednesday issued a warrant for the arrest of Paul N. Germain, 62. If convicted, he faces up to 10 years in jail. According to the police, Germain had been siphoning money from the accounts since 1997 and the company didn't find out until a recent audit. A Principal spokeswoman assured that all of the money has been replaced in the shareholder accounts.

John Kim, the head portfolio manager of KL Group, a collapsed hedge fund in West Palm Beach, Fla., was reportedly ordered arrested last week by U.S. District Judge Kenneth Ryskamp for defying an asset freeze on money intended to be returned to investors. According to a lawsuit the Securities and Exchange Commission brought against Kim last year, he defrauded investors of more than $200 million.