The Security and Exchange Commission’s formal dealings with mutual fund companies may continue into next year if the Commission follows through on plans to punish investment firms for failing to provide mutual fund board members with vital information, Dow Jones reports.

The Commission’s widespread campaign against misconduct within the mutual fund industry first gathered steam more than a year ago when Morgan Stanley paid a fine to settle charges stemming from its revenue-sharing agreements with nearly a dozen mutual fund providers.

Massachusetts Financial Services Co . and Pimco recently settled SEC charges for withholding information about directed-brokerage practices.

The next potential wave of enforcement actions closely follows recent mandates that have increased the power of independent board members by requiring 75% of a board, including the chairman, are independent. As well, added responsibilities have increased liabilities for all mutual fund board members.


The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.