Mutual fund expenses are at the top of the Securities and Exchange Commission's list for inspection priorities, according to Compliance Reporter.
The office of inspections and examinations will be scrutinizing how much mutual funds pay to affiliates, said Lori Richards, director of the office. The goal here is to make sure that mutual funds are disclosing this information to their boards, and that the boards have been playing an active part in approving them, said Richards.
This scrutiny is a result of enforcement action brought against Citigroup Global Markets, and Smith Barney Fund Management, which were fined a total of $208 million for not disclosing payments to their boards.
Other priorities for the SEC in the coming year include: suitability, a firm's controls over information, and how well the firm prevents insider trading and front running, anti money laundering and the use of soft dollars.
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.