Regulation

A U.S. Supreme Court case of a 401(k) investor from Dallas who claimed his employer failed to execute an order, costing him $150,000, may pave the way for lawsuits by individual investors, rather than class-action suits.

Chief compliance officers should make the valuation of distressed securities their No. 1 priority, Andrew J. Donohue, director of the division of investment management at the Securities and Exchange Commission advised at last week's national CCOutreach meeting, the agency's educational program for CCOs.

The Securities and Exchange Commission continues to recognize the growing influence of the Internet on the mutual fund industry by giving investors greater access to financial information online.

Let's be realistic about New York Governor Eliot Spitzer, a man many in the mutual fund industry detest for launching the timing and late-trading investigations.

Let's be realistic about New York Governor Eliot Spitzer, a man many in the mutual fund industry detest for launching the timing and late-trading investigations.

Amid the sobering talk of a possible recession, there were two pieces of news last week that are cause for additional consternation. First, bond guru Bill Gross of Pimco warned that the subprime crisis could linger for another two years, wiping out another $250 billion in loan defaults through the end of next year on top of the $900 billion worth of current questionable collateralized debt obligations and subprime loans.

The Supreme Court heard arguments last week in a case seeking to eliminate a state's right to issue tax-free municipal bonds for paper concerning its own state, but to tax out-of-state municipal bonds.

The digital age continues to make inroads at the Securities and Exchange Commission, as the SEC said on Nov. 2 it is considering a plan to permit fund managers to file applications for exemptive relief, or variances from agency procedures, over the Internet. The industry has through Dec. 14 to comment on the proposal.

After more than a decade of fits and starts for prospectus profiles, it appears that both the mutual fund industry and the Securities and Exchange Commission are finally comfortable with the idea.

Amid the sobering talk of a possible recession, there were two pieces of news last week that are cause for additional consternation. First, bond guru Bill Gross of Pimco warned that the subprime crisis could linger for another two years, wiping out another $250 billion in loan defaults through the end of next year on top of the $900 billion worth of current questionable collateralized debt obligations and subprime loans.