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The Certified Financial Planner Board of Standards has raised the ethical standard guidelines for the 55,000 planners in the nation with CFP credentials, in order for investors to get better help in selecting among increasingly complex financial choices.

As Baby Boomers begin to retire and sell out of stocks, the willingness of a counter-party to buy those securities will be critical to the price they will command—and the well-being of those Boomers in retirement, The Sacramento Bee reports.

Denver-based Old Mutual Capital launched a new website for its financial advisers and individual investors designed to offer quick access to investment and product information.

One of the top specialty fund categories in the second quarter was natural resources funds, rising 14%. So far this year, they are up 21%, the Associated Press reports. China funds rose 21% and Latin American funds delivered 20% in the quarter.

Chinese regulators are about to approve four additional equity funds, in an attempt to boost institutional holdings, Reuters reports.

Asset manager merger and acquisition deals were up a record 30% from the same period last year, according to MarketWatch. In the first half of this year, Putnam Lovell NBF Securities, recorded 112 M&A deals, compared to 86 deals in the first six months of 2006.

Michael Berger, whose hedge fund went bust in January 2000 and lost $400 million and who has been a fugitive since March 2002, was caught and arrested in Austria last week, according to Reuters.

Hedge fund companies Haidar Capital Management and Haidar Capital Advisors, along with their over, Said Haidar, have settled mutual fund trading charges by the Securities and Exchange Commission with a fine of $4.58 million. Haidar and his companies, however, neither admitted to nor denied the charges.

A retirement guide for women that the Heinz Family Philanthropies and the Women's Institute for a Secure Retirement issued last week brought to light some startling facts.

In the thicket of Democrats running for the White House, New Mexico Gov. Bill Richardson outlined some of his tax and economic ideas for BusinessWeek. Among them, Richardson called for a national pension system to replace Social Security akin to a 401(k) that would be portable as workers moved from job to job, he said. When it comes to keeping cuts to the dividend and capital gains takes, Richardson’s answers are somewhat ambivalent. As for capital gains tax, which went from 20% to 15% in 2003, but is scheduled to be revised again in 2010, Richardson said he’d push to keep it. “I'm a pro-growth Democrat,” Richardson said. “As President, I would use the tax code to incentivize the economy. I would give tax incentives to companies that pay over the prevailing wage, to technology startups, to companies that move into rural areas. I would try to get tax simplification, tax fairness. I would increase tax incentives for the middle class.” But keeping the 15% rate for dividends, which were taxed at 35% before the 2003 law, might be a different story. “I would look at all the Bush tax cuts but not make them permanent. I believe we have to shift them to the middle class,” he said. 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.

Scandals will forever plague the financial industry, and the next big ones will probably involve brokerage activities and proprietary trading, according to BusinessWeek. Investment firms have made a lot of money trading for their own accounts, and many now have prime brokerage businesses, which process trades for hedge funds, and are extremely profitable. A practice known as front running, which involves trading ahead of big buy and sell orders to profit unfairly from the ensuing ups and downs in prices, is making waves in the industry. There are worries that prime brokers are tipping off their own traders about large mutual fund orders, and their hedge fund clients as well. In return for the information, banks receive instant easy trading profits and sometimes cash payments right away from hedge funds. Mutual funds suffer from the scheme by buying stocks at higher prices or selling as lower ones then they should have. Regulators have been slow to react to the growing problem, but front running is very hard to prove. “It’s a gray world,” says New York University Professor Lawrence White, but cooperating to protect high prices and fees is where regulators and plaintiffs are ready to pounce.” There are other types of schemes that are just as shady, such as short-sellers, who often conspire to horde a company to drive down its stock. Examining the Street’s response to the near closing of two Bear Stearns’ hedge funds demonstrates that conspiracy takes place, and is continuously changing in ways that challenges black-or-white judgments. Bear Stearns’ situation is murky. Banks have incentives to keep each other up and running and prevent a systemic rundown. JPMorgan, Goldman Sachs and Bank of America all agreed to help Bear and settled their losses without forcing a liquidation of the fund’s assets, which would have hurt the subprime mortgage market even more. No matter what, collusion will always take place on Wall Street. When things get out of hand, a case will go to the Supreme Court, but by then it will be years too late. 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.

Microfinance deals are not thought of as profitable. However, the high interest paid on microloans makes the deals just that, and more hedge funds and big investors are looking to break into the business, according to BusinessWeek. “This is not a charitable activity,” said Scott Budde, a managing director at TIAA-CREF, which aims to invest $100 million in such deals. “We’re looking to produce competitive returns.” Microloans are in flux, too. As many as half of the globe’s three billion poor people may be eligible for loans—typically just a few hundred dollars—at interest rates that average 31% a year, according to consultancy McKinsey & Co. A report last month by Standard & Poor’s notes that the over $15 billion in mircoloans currently on the books doesn’t compare to the potential of some $150 billion in lending. Microfinance is “emerging out of the acne phase and getting ready for the junior prom,” says Brenton Kessel, president of Abacus Wealth Partners, which has put about $6 million in to the $23 million Unitus Equity Fund, one of the almost 100 investment funds focused on microfinance. Soon even more cash might start heading to the sector. By September, S&P hopes to establish global standards for the business and expects to rate 20 microlenders, which are wanted by retirement funds and others hoping to get a piece of the high returns the sector can offer. “Doors will open” once investors have a better sense of the risk, said Gary Kochubka, director of the emerging markets at S&P. However, some firms are getting involved now. Morgan Stanley packaged small loans worth $108 million from a dozen for-profit lenders into a tradable security with yields of up to 7.7% in May. Two other major industry firms are planning to do the same this year, offering a total of $500 million in securities, S&P states. However, some experts think that rates and returns may fall with competition. Sky-high returns are temporary phenomenon, says Matthew Bannick, who heads Omidyar Network, backed by eBay founder Pierre Omidyar. Bannick figures even investors who are only in the game for themselves will be still be helping microlenders reach more people. “Is it better to serve 100 million poor people and break even or to serve 2 billion poor people and make a modest profit?” he asked. 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.

Despite relaxed rules on overseas investing, India’s quickly growing population of millionaires are choosing to stay home when it comes to investing, according to Dow Jones. Citing less than murky rule changes, and an attractive home market, Indian investors remain relegated mainly to real estate and currency abroad. “The awareness of international markets is very low,” said Sudip Bandyopadhyay, chief executive of Reliance Money in Mumbai. “Even the fact that it is possible to invest abroad is not widely known,” he said. The confusion is not only among investors, but at some bank branches as well. The Reserve Bank of India allows individuals to remit up to $100,000 abroad, up from the $50,000 limit set in October 2006. Analysts there are slowly increasing the investment options available, although the central bank recently notified personnel that remitting to foreign exchanges to cover margin calls is prohibited. Anjani Sinha, managing director and chief executive of the National Spot Exchange, a subsidiary of the Multi-Commodity Exchange of India, said the restrictions give “the flavor of a controlled economy in which the state decides where a citizen should invest money and where he should not.” Whether it’s an uncertainty about regulations that is keeping investors home is unclear, since equities and real estate values remain extremely strong. In fact, Indian markets have been attracting their own share of offshore attention, with $8 billion in foreign investments last year, and almost $6 billion in 2007, to date. “We have been selling the India story heavily. Then, as an adviser, you tell the investor to put money outside. Investors feel there is a disconnect,” said Rajan Krishnan, head of asset management business at Principal Pnb Asset Management Company. Still, some companies, like Reliance Money, are looking beyond India’s borders to the Nasdaq, the Nymex and the Heng Seng. Reliance works with London-based CMC Capital Markets, allowing Indian investors to trade directly on the U.K. company’s platform. The Reserve Bank is now looking into opening a London desk, citing increased interest in investments in stocks and real estate in the U.K. A working group created by the Association of Mutual Funds in Indiahas been lobbying the central bank to allow investment in overseas mutual funds under the $100,000 cap. Right now, investors looking to mutual funds must invest in the local currency. “If we get higher limits, we should be open to launching funds that invest 100% in overseas equities,” said Vivek Kudva, president of Franklin Templeton Investments India. Funds are only allowed to invest $200 million in overseas stocks. 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.

Omaha-based T.D. Ameritrade has restructured its board, removing two veteran members connected to the company’s largest shareholders: Toronto-Dominion Bank and the company’s founding Ricketts family, according to the Associated Press. Large institutional investors had complained that the two members, who both sat on the mergers and acquisitions committee, impeded potential business-building deals. Toronto Dominion and the Ricketts own 40% and 21% of the brokerage, respectively. Last week, two hedge funds, S.A.C. Capital Advisors of Stamford, Conn., and Jana Partners of New York issued a release commending the company for taking “a significant step toward removing the harmful influence of Toronto-Dominion Bank.” The funds, which together claim to own 8.4% of the company stock, said that the former board members, Wilber Prezzano and Robert Slezak, posed a conflict of interest, prohibiting the exploration of mergers or even a takeover with companies such as E*trade Financial. The three new board members on the five-person panel are each independent directors. Ameritrade spokeswoman Katrina Becker said that the reorganization was designed to be “a straightforward, transparent action so that if there happened to be any perception of influence, that that was eliminated. Our entire board remains committed to building shareholder value.” 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.

Zurich-based UBS may have tossed its former skipper overboard, but new Chief Executive Marcel Rohner said the investment bank will stay its course, according to the Associated Press. Rohner was tapped by the bank’s board to replace Peter Wuffli, 49, effective immediately. Wuffli’s ouster comes after the collapse of a bank-run Dillon Read Capital Management hedge fund, the exodus of several high-profile bankers, and swirling concerns over the fixed-income and U.S. brokerage businesses. Massachusetts opened investigations into claims that the company curried favor from hedge funds traders to win the bank brokerage business through low-interest personal loans and low-price rent. During a conference call, Rohner, 42, said that the bank’s strategy of running its private bank and investment bank in tandem will remain. Retiring Chairman Marcel Ospel had nominated Wuffli as his successor, a move the board swiftly rejected. Ospel will stay on for three more years. The Dillon Reade fund, which is being closed, contributed to the bank’s 6.5 % drop in first-quarter profits. The U.S. mortgage market served as the root of problems for the fund, bank officials said. ABN Amro Analyst Kinner Lakhani said the second quarter results will show whether the sub-prime problems have truly passed. 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.

China might usurp outsourcing operations from Indian cities like Bangalore and Mumbai by 2001, according to Forbes. While the Indian outsourcing industry struggles with infrastructure problems and rising wages, China is making massive investments in infrastructure, English-language training, Internet connection and technical skills, making it attractive to companies looking for an alternatives, according to IDC market research company. “Chinese cities are on the rise and nipping at India’s heels,” IDC said. “IDC forecasts that Chinese cities will overtake Indian cities by 2011 due to massive investments made, which are favorable towards offshoring.” Currently, Bangalore leads IDC’s list of the Top 10 cities best suited to be offshore services centers, followed by Manila, New Delhi and Mumbai. The Chinese cities of Dalian, Shanghai and Beijing are next on the list. The list is based on cost of labor, rent turnover rates and language skills, as well as political risk and future plans for infrastructure improvements. While many believe that China is giving India increased competition, other analysts are not sure that China will surpass India anytime soon. Thousands of college graduates are equipped for the workforces of tech companies in both China and India every year. However, India produces almost double the number of English-speaking graduates annually. Increasingly rates of attrition and wages are increasing in India as companies fight for talent. In the fiscal year through March, wages grew at an average of 12% to 15%, and are expected to rise another 20% in the present fiscal year. Also, companies in India are weighed down with problems like erratic power supply and congested roads and airports, which make traveling difficult. China is growing stronger when it comes to infrastructure and the relative ease in setting up operations in the country. Even Indian companies are setting up shops in China, at the request of Western clients and the potential to win outsourcing work from local companies. However, a report from Forrester Research concluded that China’s offshoring market had not taken off as expected and had a way to go before emerging as an option besides India. “The consensus among interviewees was that China still has not overcome clients’ concerns about limited English skills, attrition, and weak intellectual property protection,” said John McCarthy, author of the report, “China’s Diminishing Offshore Role.” Forrester quoted an executive who “went so far as to say that China had to be 20% cheaper than India to be viable, and it’s roughly at par in terms of rates currently.” 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.

Lake Shore Asset Management, a Chicago-based hedge fund, had $288 million of its assets frozen by a federal court last week, after regulators stated it overstated its holdings, according to Bloomberg News.

NEW YORK-Managed accounts have been steadily gaining traction, but 2007 may be the year they truly get unleashed, according to panelists at a recent conference here.

Just as in real estate it's all about location, location, location, for mutual funds, it's performance, performance, performance.

NEW YORK-Without a good financial plan, retirement can be anything but relaxing. In fact, even for the affluent investor, adjusting to what should be one's leisure years takes some jarring realizations, said speakers at a recent presentation hosted by the Money Management Institute here.