Special Program Root Tag

With millions of Chinese rushing to invest in stocks and mutual funds, the nation’s top securities regulator is urging fund managers to improve their risk controls so that the market does not overheat, Reuters reports.

Many expect the Securities and Exchange Commission will strengthen hedge fund rules today, Dow Jones reports.

Vanguard has contracted with Verid to verify customers’ identities when they open an account over the telephone or online.

Mellon Financial’s Dreyfus subsidiary has promoted Thomas F. Eggers from chief operating officer and president to chief executive officer and Jon Little from CEO of Mellon Global Investments to Dreyfus chairman.

Bill Miller, manager of the Legg Mason Value Trust Fund, has probably reached the end of a 15-year streak of beating the S&P 500 every year, CNNMoney.com reports.

William Galvin, Massachusetts secretary of the commonwealth, takes issue with a recent Wall Street Journal editorial praising the proposed merger of the regulatory units of the NASD and the New York Stock Exchange.

Responding to an influx of applications for new exchange-traded funds, the Securities and Exchange Commission is working on a new rule that would speed up their approval process, The Wall Street Journal reports.

Jefferies & Co. and two of its executives settled with the Securities and Exchange Commission last Monday over providing mutual fund traders at Fidelity Investments with $2 million worth of illegal gifts and entertainment to secure their trading business.

NEW YORK-Mutual funds want more specific market data, more succinctly delivered, according to a research paper released by Reuters' enterprise information division.

BOSTON-By 2011, Baby Boomers will move roughly $2.1 trillion out of individual retirement accounts (IRAs), according to analysts. And approximately $1.9 trillion is likely to roll out of the control of whichever company holds them now and into the hands of a competitor, according to Laura Varas, an analyst with Financial Research Corp. (FRC) in Boston.

Complying with new regulations, preparing to capture the assets of retiring Baby Boomers and offering alternative investments is prompting investment firms to seek out and retain top talent-with increased compensation as a key leverage.

The Securities and Exchange Commission has announced possible topics for its ongoing CCOutreach seminars across the country next year, among them examinations, risk assessment and brokerage arrangements.

Keith Tucker, the former chief executive officer of Waddell & Reed who has been charged with evading $1.2 million in Kansas City, Mo., taxes, testified that was never his primary residence.

Global assets controlled by hedge funds have reached $2 trillion, an increase of about 18% since April. The figure is based on a bi-annual survey from trade publication HFM Week of 57 hedge fund administrators that service the vast majority of the world's hedge funds.

Mellon Gives Maisano Additional Responsibilities

Over the past six years, 50 investment management companies have opted out of providing 401(k) plans, and more will continue to consolidate or exit the business, according to New York Life Investment Management (NYLIM). Scale, money and resources to keep the business afloat are the key factors prompting providers to leave.

The Securities and Exchange Commission will take up several ’40 Act issues at its meeting this Wednesday, including potentially re-opening comment on the controversial 2005 rule requiring mutual fund board chairman to be unaffiliated with the fund complexes. Fund companies complained that the rule would bring undue cost and burden, despite SEC claims otherwise. The rule passed 3-2. This year, a federal appeals court criticized the SEC for failing to conduct thorough enough research on the impact of the rule, and ordered the regulator to conduct such research and devise alternative solutions. Wednesday’s open meeting agenda calls for the Commission to consider re-opening the comment period on this rule, in order to better prepare for a more thorough report to be published by the Office of Economic Analysis. Although several companies have already complied with the rule, many have argued it is unfair. Fidelity has been among the most vocal. Also on Wednesday, the Commission will discuss potential for a new anti-fraud rule under the Investment Advisers Act, and the definition of “accredited investors” under the Securities Act of 1933. The regularly meeting is scheduled for 10 a.m. on Wednesday, Dec. 13 at the SEC headquarters auditorium.

Wilmington-Del.-based, ING DIRECT, has added six mutual funds to its on-line line-up. Branded as the “Orange Investments” the new funds include a conservative risk, moderate risk, and growth asset allocated fund, as well as one money market fund, a global real estate fund, and a global equity fund. “We’ve designed our website with a tutorial on investing so the serious saver will take the next step from an Orange Savings Account to Mutual Fund Investing,” said Arkadi Kuhlmann, president and chief executive of ING Direct. An affiliate of Dutch financial services giant ING, ING DIRECT is most readily recognized for its on-line, above-market savings accounts, a company known for its all-online, high-yield interest, savings accounts. The new, no-load funds bring the total ING Direct offering to 15 funds.

The Investment Company Institute hired James Hart as Political Affairs Officer. He will report to Daniel Crowley, Chief Government Affairs Officer. He replaces Vivian Lausevic, who joined the American Gas Association as Director of Public Affairs earlier this year. Hart will represent the ICI before federal government officials and manage the Institute’s political program, including the Political Action Committee. He will work to reinforce the Institute’s relationship with key constituents on Capitol Hill, in the administration, with trade organizations and with leading think tanks. Hart will serves as the primary liaison to the senior staff at the congressional campaign committees. Hart recently served as Chief of Staff to Rep. Carolyn McCarthy. He previously served as Chief of Staff to Rep. Jim Maloney (D-CT) and Rep. Bart Stupak (D-MI) and as Chief of Staff and Legislative Director for Rep. Doug Applegate (D-OH).

Hedge fund managers are looking to Capitol Hill to hear market-moving information, and some are hiring lobbyists, not to influence government, but to tell them what to do, according to the Wall Street Journal. The Securities and Exchange Commission is looking into whether laws are being broken in the transfer of information between Congress and Wall Street. It is not illegal to disclose information that is not publicly known about the workings of Congress, even if it could affect stock prices. It only breaks congressional ethics rules if elected officials or their aides directly profit. However, the SEC is trying to figure out whether the passing of market-sensitive information by lobbyists to investors could violate insider-trading law. Some congressional staffers say they now receive nearly as many phone calls from lobbyists asking abut the status of legislation as they get from lobbyists asking to change legislation. “The amount of insider trading going on in these halls is incredible,” says one aide to a Republican lawmaker. Clint Carlson, who runs Dallas-based Carlson Capital, a $3 billion hedge fund, says his firm deals with a number of lawyers with Washington expertise in order to track public-policy developments. “ You have to watch the line. If you’re worried it might be inside information, it’s best not to use it, even if it’s legal.” The use of lobbyists as tipsters is drawing attention from Congress. After winning control of the Senate and House last month, the Democrats are considering requiting lobbyists to disclose their political-intelligence clients. Currently, lobbyists only have to disclose their work for clients seeking to influence government, while hedge funds and other clients seeking market-beating tips can remain anonymous. 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.