Special Program Root Tag

Any type of arbitrage activity in an annuity is of concern to the New York Attorney General’s office, David Brown, the head of its investment protection bureau, warned yesterday. And the NASD and SEC are both poised to levy charges against annuities, The New York Times reports this morning.

Fred Alger Management announced yesterday it has hired Katherine P. Feld as senior vice president and chief compliance officer.

The National Association of Securities Dealers has slapped its first fine on a brokerage firm for violating NAV transfer program procedures.

West Virginia has joined the growing regulator bandwagon, Reuters reports, citing SEC filings.

A Securities and Exchange Commission official Thursday expressed doubts about two SEC proposals put forth by his colleagues aimed at cleaning up the mutual fund industry, Reuters reports.

Rydex Investments this week launched 11 new funds spanning market capitalizations and investment styles, ranging from small to large cap, value to growth.

Responding to civil fraud charges, FleetBoston Financial has put eight executives on leave. They include James Tambone and Louis Tasiopoulos, co-presidents of Columbia Funds Distributor, the fund distribution unit of FleetBoston, The Wall Street Journal reports this morning.

The House Financial Services Committee passed legislation yesterday that would strengthen the SEC’s powers in detecting fraud.

In an effort to stifle the unfortunate trend of market timing, the Securities and Exchange Commission voted Wednesday to consider the division of investment management’s proposal that would make 2% redemption fees mandatory for shares redeemed within five days of purchase.

The Investment Company Institute spends $30 million each year just to lobby in Washington, and the lobbying group’s recent declaration that shareholder’s costs have dropped substantially since 1980 is just the latest example, according to a CBSMarketWatch.com column.

T. Rowe Price Group hired Kenneth V. Moreland Tuesday to be its chief financial officer.

Brinker Capital, one of the most preeminent providers of separately managed accounts, announced yesterday that it has broadened its "Destination" lineup to include passive large-core and real estate, and that it has reduced its fees from 50 basis points to 20 basis points.

A pair of regulators announced civil charges against FleetBoston yesterday, offering damning evidence that two of the fund shop’s subsidiaries allowed $2.5 billion worth of market-timing business throughout 17 of its funds.

No one is above the law, New York and Massachusetts top regulators charged yesterday.

Fidelity Chief Operating Officer Robert Reynolds told attendees at the Reuters Fund Summit yesterday that 12b-1 fees are "fair" and necessary in order to cover distribution costs, Reuters reports.

Canadian Imperial Bank of Commerce announced Monday that it would pour $37 million (C$50 million), into new initiatives aimed at reforming and educating employees on corporate governance. The funding is, in part, forced by a December settlement with federal regulators stemming from its links to the blown-up accounting practices at Enron.

The Investment Company Institute proposed a number of measures late yesterday that would require mutual funds to do a better job of disclosing transaction costs.

MIAMI - It’s been best of times and the worst of times for the mutual fund industry, as this past year featured a sharp upturn in the stock market along with a wave of impropriety at the nation’s biggest fund shops and increased regulatory scrutiny. That was the sentiment expressed by Penny Alexander, chairman of the National Investment Company Service Association (NICSA), at its annual conference and expo at the Doral Golf Resort and Spa.

A trio of former executives from Security Trust Co. and Canadian Imperial Bank of Commerce pleaded innocent Monday in Manhattan criminal court to charges stemming from the mutual fund scandal, Reuters reports.

Fidelity Investments reported a 12% increase in net income for 2003 thanks to cost-cutting measures and a replenished stock market, the firm said on Monday.