Special Program Root Tag

The NASD is set to take disciplinary action against brokerage firm A.G. Edwards over allegations that the firm accepted kickbacks from mutual fund companies in 2001 and 2002 in exchange for marketing their products to certain retail customers, A.G. Edwards indicated in a regulatory filing. The NASD is seeking the disgorgement of profits, sanctions and restitution. But via an e-mail, the company disputed the allegations and said it plans to vigorously defend itself against the charges.

JB Oxford Holdings' trade processing unit, National Clearing Corp. (NCC), has agreed to pay $2.1 million to the Securities and Exchange Commission over allegations of abusive mutual fund trading. NCC allegedly facilitated late trading and market timing in mutual fund shares, for which it is paying a $1 million fine and will reimburse clients up to $1.1 million.

NEW YORK - To illustrate just how dramatically the compliance landscape has changed within the money management industry in recent years, Richard Marshall recalled his days as an examiner in the New York office of the Securities and Exchange Commission during the 1980s.

NEW YORK - Despite a less-than-spectacular outlook for 2006, mutual fund managers cited by Lipper as "Lipper Leaders" last week said they see some encouraging signs of value, if investors know where to look. And mainly, they said, value can be found among a number of large-cap stocks.

Last week, Amvescap of London and Atlanta announced it would purchase PowerShares Capital Management of Wheaton, Ill., sponsor of 36 exchange-traded funds, for an initial purchase price of $60 million in cash plus additional contingency payments of cash and/or stock over the next five years. The financial structure of the acquisition agreement could push the merger deal to as much as $730 million and largely depends on the growth of assets under management, an Amvescap spokesman said. The maximum amount could be earned by PowerShares principals if assets reach $125 billion.

Charles Schwab reported that for the quarter ended Dec. 31, 2005, the company's net income was $187 million, which is impressive when compared to the $53 million for the fourth quarter of 2004. For the year ended Dec. 31, the company's net income was a whopping $725 million, compared with net income of $286 million in 2004.

Although its asset management division is still king, the brokerage unit of Fidelity Investments outgrew its money manager peer in 2005 by about 14%, the Boston-based fund giant indicated in an earnings report.

Wilmington Trust Recruits Philip P. Cave as President

Over the last 2-1/2 years, fee-based managed account assets have soared by $500 billion, and as their star continues to rise, experts say the sponsors that best consolidate their managed account operations to deliver a consistent and understandable message to advisers will reap the greatest rewards.

Albert Einstein once called the income tax "the hardest thing in the world to understand." At least American investors are in the company of genius.

Janus Capital Group's printing business, Rapid Solutions Group, did not do so well in the fourth-quarter of 2005, causing the firm's overall net income to unexpectedly drop 41%. However, for the first time in five years, the firm finished the year off with positive inflows, according to Reuters.

The Treasury Department and the Internal Revenue Service have proposed rules that if approved, will give taxpayers additional detail about sorting contributions to their 401(k) savings plans as if they were Roth IRAs, according to Dow Jones.

Japanese stocks have been attracting small investors - despite the collapse of Internet firm Livedoor Co. - who have invested $600 million into a newly created stock fund, according to Reuters.

Daniel Calugar, a poster boy for the mutual fund trading scandals, pleaded guilty Wednesday, to defrauding investors, according to New York Attorney General Eliot Spitzer.

Baby Boomers turning 60 this year who plan to cash-in their retirement account can look forward to walking away with an average of $112,000, according to a report released by Boston-based Fidelity.

Columbia Management has added R Shares to 13 of its funds. The shares, which will be available only to retirement plans and will carry fees that vary depending on plan size, are targeted and small-to-mid-size retirement plans. It is the first time that Columbia has offered R Shares, and the firm is already considering adding them to other funds.

A majority of investors believe socially responsible investment (SRI) funds are doing a good job of keeping companies on the straight and narrow, a survey for Calvert shows.

Assets in funds that use socially responsible investing screens grew at a faster pace between 1995 and 2005 than the assets of all professionally managed funds, the Social Investment Forum reported.

Thomson Financial expects another big year of mergers and acquisitions, and the prospect of mergers has captured investors' attention, as they are now trying to spot potential mergers in an effort to boost their returns, according to the International Herald Tribune.

In a proposed bill currently making its way through Congress, mutual fund companies will be allowed to offer investment advice to employees participating in retirement plans that are sponsored by their employers, according to The Boston Globe.