Special Program Root Tag

Despite a sudden turnover in its leadership ranks, reports of a looming budget crisis and new criticisms that it is failing in its mission to police the mutual fund industry, Securities and Exchange Commission Director Lori A. Richards is defending the regulator's record and claims that it's stronger, smarter and more nimble than it was 21 months ago.

* Focused routine examination on high-risk firms and increased examination frequency from once every five years to once every two or three years (prior to 1998, examinations were as infrequent as once every 12 years to 24 years

Investment Company Institute President Paul Schott Stevens said on Wednesday that H.R. 2386, the "College 529 Invest in Education Savings for Tomorrow Act of 2005," and S. 1112, the "College 529 InvEST Act of 2005"--two bills that would make permanent the tax-free treatment of qualified deferrals from 529 college savings plans--will benefit millions of American families saving for college.

By stepping down as Chairman of the Securities and Exchange Commission, William H. Donaldson puts at risk the very reforms he fought for during his two-year tenure, BusinessWeek reports. Although a Republican, Donaldson ended up siding with Democrats over key issues such as mutual fund reform, hedge fund regulation and securities exchange modernization.

Even as the SEC tries to improve disclosure in the aftermath of the mutual fund trading scandals, it may be burdening its investors with more information than needed, and in the process, driving up the cost of compliance to companies, according to an article in Forbes.

The Securities and Exchange Commission has taken some positive steps in examining mutual fund companies but more could be done, according to a Government Accountability Office report released Tuesday.

William Galvin, secretary of the commonwealth of Massachusetts, expressed doubts about President Bush's appointment last week of Californian Republican Christopher Cox as the new chairman of the Securities and Exchange Commission, Dow Jones reports.

Armada Funds said on Wednesday that effective June 13 it will be officially called Allegiant Funds. National City Investment Management, the investment advisor to Armada Funds, will become Allegiant Asset Management. In addition, Allegiant Institutional Services will include custody and 401(k) services.

As if the American International Group (AIG) case was not complicated enough, a deal cut with Joseph H. Umansky may further complicate cases being brought forth by the Justice Department and the Securities and Exchange Commission, the New York Times reports.

Hedge fund performance rose modestly in May by talk of losses associated with General Motors, according to hedge fund tracking firms, the New York Times reports. Even so, the year has been a wash for many fund of funds.

The NASD said on Wednesday that it has fined 15 broker-dealers more than $34 million in total for directing brokerage in exchange for preferential treatment for certain mutual fund companies.

NEW YORK -- Former Bank of America broker Theodore C. Sihpol III was found not guilty this afternoon on 29 of the 33 counts charged against him, including grand larceny, the Associated Press reports.

The jury deliberating the fate of former Bank of America broker Theodore C. Sihpol reached agreement on 20 of the 33 counts against Sihpol late Wednesday, the Associated Press reports.

The nation's chief treasurer expects lawmakers will bridge the impasse over Social Security reform as soon as this fall -

The typical American household has less than $20,000 socked away for retirement and plans to supplement the remaining 59% of their savings with Social Security, according to a new report from Fidelity Investments.

The Vanguard Group said on Monday that its Quantitative Equity Group will manage a portion of the $6.1 billion Vanguard Energy Fund, which has been managed exclusively by parent company Wellington Management since its inception in 1984.

Waddell & Reed Investment Management may have unintentionally created a legal precedent affecting the national mutual fund litigation after last week's lawsuit before U.S. District Judge Kathryn H. Vratil, The Kansas City Star reports.The proceedings established that a judge, who happened to be a mutual fund investor, does not have to disqualify herself from a case involving other mutual funds on a basis of possible conflict of interests.

Brinker Capital said last week that it has inked a five-year deal with Checkfree Investment Services that ensures that Brinker will run its separately managed accounts business on Checkfree's existing APL program as well as transition to its new Enhanced Portfolio Lifecycle (EPL) through 2010.

Amid struggles to restructure its fund management operations, Deutsche Bank Asset Management (DAM) has lost a key senior manager.