Money Management Executive Latest News

After coming under harsh scrutiny in recent months, most recently via the Canary Capital Partners scandal, the hedge fund industry was handed what many feel is a victory Monday. After analyzing the Securities and Exchange Commission’s proposed rule changes, some industry insiders said they don’t think they will greatly alter companies’ day-to-day operations, The Wall Street Journal reports.

FOLIOfn has expanded its FOLIO Advisor and FOLIO Manager platforms to accommodate financial advisers, separately managed account managers and mutual fund wrap sponsors.

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 go into effect Oct. 1.

Admitting conflicts of interest regarding mutual fund trades, Alliance Capital said Tuesday that it had suspended both a hedge fund executive and portfolio manager.

Securities and Exchange Commission Chairman William Donaldson testified before the Senate Banking Commitee Tuesday that the commission is studying possible rules to thwart market timing and late trading, the issues at the epicenter of the New York State Attorney General’s investigation, Reuters reports.

All the positive signs notwithstanding, thoughts that the slowly recovering economy is still a ways away from full health have begun to creep back into the minds of financial analysts and Bush administration officials, USA Today reports.

Jurgen Schrempp, chairman and chief executive of DaimlerChrysler, has resigned from the board of directors at the New York Stock Exchange, the German automaker said on Sunday.

Strong Capital Management shareholders will be reimbursed if the probe by New York State Attorney General Eliot Spitzer finds that the company traded questionably, the company said in a letter dated Friday.

The Securities and Exchange Commission issued a 134-page report Monday recommending that hedge funds register as investment advisors with the SEC. The SEC said that while it has historically allowed hedge funds to exist without registering, regulators are now concerned that the recent rapid growth of hedge funds, particularly among institutional investors, and increasing cases of fraud, now warrant oversight. The most recent high-profile case of fraud is the investigation into market timing and late trading by Canary Capital Partners.

An investigation into possible insider trading by Morgan Stanley has reportedly begun, stemming from the firm’s acquisition of Dean Foods stock in March 2001.