Money Management Executive Latest News

Barclays Offers First ETFs In a 401(k) Savings Plan

At least two fund groups have now experienced, firsthand, the impact of new requirements mandated with the enactment last year of the Sarbanes-Oxley Act. That legislative enactment aimed, among other things, to stem corporate fraud and make top executives accountable for the accuracy of financial reporting.

Even with the recent scandal unfolding in the fund industry, the Mutual Fund Integrity and Fee Transparency Act of 2003 is heading for its twilight rather than the limelight, industry observers said.

Separately managed accounts have become the hip product in the financial services industry in the past few years, with many traditional mutual fund firms now looking to penetrate the space. But one fund firm, Franklin Templeton, has been at it for years, and its deep distribution relationships and product breadth has enabled the company to garner $4.65 billion in assets. Money Management Executive Associate Editor Kevin Burke sat down with Franklin Templeton Private Client Group President and Chief Executive Officer Kent Strazza to talk about how his firm's experience in the field and strong fixed-income reputation enables Franklin to deliver a quality managed account product.

As recent events make clear, market timing continues to be a significant concern for the mutual fund industry. The launch of federal and state investigations into an array of mutual fund houses has created a wave of public pressure to ensure that small, individual investors are protected. It is inevitable that the fund industry will need to implement more effective solutions to eliminate market timing opportunities.

PFPC is offering a new service to help mutual fund companies meet the requirements of the customer identification program (CIP) regulations of the USA Patriot Act, which went into effect at the beginning of this month.

Further compounding employees’ retirement planning concerns, a new IRS ruling reduces by about 60% the amount they can withdraw without penalty before age 59-1/2.

Top-tier mutual fund distributors spend nearly $80,000 more in total sales per wholesaler, on average, than second-tier companies, according to a recent research by executive search and consulting firm DGL Consultants.

New York State Attorney General Eliot Spitzer mocked the fund industry’s "claim of purity," along with Congress and the Securities and Exchange Commission’s failure to detect the improper trading he has uncovered, the New York Post reports.

Massachusetts regulators issued subpoenas Thursday to employees of Fidelity Investments, Morgan Stanley and Franklin Resources, extending their market-timing probe at Prudential Securities, Reuters reports. Spokespeople for the three firms that have just now come under the inspection of Mass. Secretary of the Commonwealth William Galvin confirmed that they have received these requests for information.