Money Management Executive Latest News

The Securities and Exchange Commission is looking into whether mutual funds do their part to collect shareholders' money from class-action lawsuits, Lori Richards, director of the SEC's compliance inspections and examinations, told Reuters. Principally concerned with the methods investment advisors use to evaluate whether or not to file for a settlement, the Commission could reveal its findings in a month, she said, speaking at a mutual fund conference in Washington.

As it begins to merge its own Nations Funds with the Columbia Funds it acquired through its FleetBoston Financial purchase, Bank of America is eliminating some of the poorly performing funds from Fleet.

The Ontario Securities Commission, Canada's chief regulator, said Monday it has reached a settlement with Franklin Templeton Investments over market timing allegations at some of its mutual funds, according to Reuters.

Janus Capital Group said Monday it plans to sign a fund distribution deal with the private banking arm of J.P. Morgan Chase to increase asset inflows, according to Reuters.

President Bush might be bullish on the idea of Social Security privatization, but a number of Wall Street experts are expressing skepticism over whether returns will live up to expectations.

Amid the furor over the mutual fund trading scandal, three fund industry experts, Mercer Bullard, Jack Bogle and Don Phillips, told Morningstar that the industry needs to embrace several reforms to fix its inherent flaws.

The NASD has fined the former Quick & Reilly, now a member of the Banc of America Investment Services family, $570,000 for directed-brokerage violations. In addition, NASD imposed a $275,000 fine on Piper Jaffray for similar abuses. The Piper Jaffray fine was adjusted to reflect the firm's voluntary disclosure of its wrongdoing, which was uncovered during a self-evaluation.

The financial advisory unit of American Express violated its fiduciary duty to clients by providing secret incentives to its sales force to sell poorly performing in-house mutual funds, New Hampshire regulators allege. American Express Financial Advisors reportedly rewarded its sales staff with higher bonuses, more praise and, in some cases, with free one-year leases on Mercedes-Benz cars, for selling the proprietary funds. The New Hampshire Bureau of Securities Regulation investigated the unit's sales practices between 1999 to 2003 and has asked a hearing officer to impose penalties of up to $17.5 million, including restitution.

Paul Roye, director of the investment management division at the Securities and Exchange Commission, ended nearly a year of speculation on Feb. 18 by announcing that he'll step down as the mutual fund industry's top regulator. The news rekindled a debate, however, over who might replace the mild-mannered Kentuckian and just what his legacy might be.

MIAMI - Chief compliance officers at mutual fund shops are finding out that defining their responsibilities takes a lot of guesswork.