Capital Research Taps Roye to Head Fund Unit

Paul Roye, former top mutual fund regulator at the Securities and Exchange Commission is going to work for mutual fund giant Capital Research & Management, Reuters reports.

Roye, who stepped down in February as director of the SEC's division of investment management, will serve as senior vice president in the firm's fund management unit, effective May 9.

He will report to Paul Haaga, Capital's executive vice president. Capital Research oversees American Funds, the nation's second-largest fund complex with $671.8 billion in assets in 29 mutual funds.

Roye will reportedly work closely with the company's legal and compliance staff, and will also spend a lot of time with its independent directors and outside counsel on fund regulations, according to published reports.

Roye led the division of investment management through a tumultuous period marred by a pervasive trading scandal involving top executives of the $8 trillion fund industry, hedge funds and the broker-dealer community.