Special Program Root Tag

While mutual fund and other financial service firms would have the public believe they are heading into disastrous retirements, the Congressional Budget Office recently reviewed 21 reports and concluded that half of Americans will be able to maintain their lifestyles in retirement, 25% will face hardship and the remaining 25% could go either way, The Arizona Republic Reports.

With the number of people age 65 or older expected to increase from 36.3 million in 2004 to 86.7 million by 2050, more financial planners are specializing in serving the senior market, The New York Times reports. At least four professional groups are now offering certifications in financial gerontology, with many of the programs expanding beyond financial consulting to encompass healthcare services and most of the certificates achievable in only a few days.

New York Attorney General Eliot Spitzer over the weekend called on the state's banking and insurance regulators to do a better job of protecting citizens from abusive financial practices, The Buffalo News reports.

A federal jury in New York found Stephen Treadway, the former chief executive officer of Pimco Advisors Distributors and the former chairman of the board of the Pimco funds, guilty on Friday of permitting hedge fund Canary Capital Partners to market time the funds, in the Securities and Exchange Commission's civil lawsuit against him.

The Securities and Exchange Commission may be red faced now over the recent U.S. Court of Appeals decision that the federal regulators lack the authority to oversee hedge funds, but they'll be thankful later, according to a New York Times article.

Wall Street firms are increasingly looking to market separately managed account to small institutions, such as local churches, schools and not-for-profits, Dow Jones reports.

Although mutual funds across many investment sectors fell steeply in the second quarter on fears of continued interest rate hikes and inflation, many portfolio managers are confident the economy and corporate profits will continue to deliver moderate growth, The Wall Street Journal reports. And even if the economy slows, as long as it does not fall into recession, they see areas of investment potential.

Mutual fund companies have been shaping up in the past three years following the trading scandal, speakers at Morningstar's conference last week agreed, according to a report by MarketWatch. Lower fees, more active boards and attention to lowering transaction costs are just three of the recent trends benefiting investors, they said.

T. Rowe Price announced plans to double the size of its Colorado Springs campus, adding a $55 million building with parking to support nearly 900 additional employees over time.

New Bright-Line Share Class Rules Not Clear Enough

Solid Infrastructure, Consistent Support Also Key

Advisors Take Advantage of ETFs' Popularity

World's Millionaires Rise 6.5% in 2005 to 8.7 Million

Federal watchdogs seeking to increase regulations of hedge funds suffered a recent setback when the U.S. Court of Appeals for the District of Columbia called the Securities and Exchange Commission's advisor registration rule "arbitrary," sending it back to the SEC for further review. The rule, approved by the SEC in 2004, requires hedge funds advisors, beginning Feb. 1, 2006, to register with the regulator as investment advisors, hire a compliance officer, be subject to inspections and adhere to specified

The Securities and Exchange Commission has put three new rules and one amendment in place regarding funds-of-funds.

Citigroup has swapped its asset management division in exchange for Legg Mason brokers and stock. In the deal, which will close in the fourth quarter, Citigroup will receive Legg Mason's 1,354 brokers in 127 branch offices throughout 22 states, along with $1.5 billion in stock, or a 14% stake in Legg Mason.

Evergreen Hires Cieszko As Distribution Chief

Full-service brokers made something of a comeback in the past year, but it remains to be seen whether they truly have ended the erosion of their market share as primary advisers to the affluent.

Advisers Must Learn About, Explain New Products Better

Quotes attributed to Steve Cohen of HSBC in the June 26 issue of MME should have been attributed to HSBC Bank U.S. Chief Executive Officer Martin Glynn. HSBC Bank U.S. is headquartered in New York.