Special Program Root Tag

In his year-end letter to member firms, Matthew P. Fink, the president of the Investment Company Institute called for severe sanctions against those who willfully acted against the interests of shareholders, but warned against misguided fixes to the industry that may end up increasing costs and diminishing returns.

Investors pulled money in November from investment companies facing the most serious charges in the mutual fund investigations, according to monthly data from Lipper Inc.

David S. Ruder, the former chairman of the Securities and Exchange Commission, who has been working as an independent consultant for embattled Strong Financial Corp., recommended the firm implement 2% redemption fees and send warning letters to Strong fund trader who buy and sell shares within a 30-day window. The company said it agreed.

Two Franklin Resources officers and one trader were placed on administrative lead as part of the company’s ongoing look into possible market timing in its funds, Reuters reports.

Morgan Stanley Investment Management has been placed on an Ohio pension fund’s "watchlist" because of its settlement with the Securities and Exchange Commission for not keeping investors informed, Reuters reports.

Investors pulled money in November from investment companies facing the most serious charges in the mutual fund investigations, according to monthly data from Lipper Inc.

David S. Ruder, the former chairman of the Securities and Exchange Commission, who has been working as an independent consultant for embattled Strong Financial Corp., recommended the firm implement 2% redemption fees and send warning letters to Strong fund trader who buy and sell shares within a 30-day window. The company said it agreed.

Two Franklin Resources officers and one trader were placed on administrative lead as part of the company’s ongoing look into possible market timing in its funds, Reuters reports.

Morgan Stanley Investment Management has been placed on an Ohio pension fund’s "watchlist" because of its settlement with the Securities and Exchange Commission for not keeping investors informed, Reuters reports.

Amid the shadow of the Securities and Exchange Commission's crucial drive toward assuring ethical mutual fund transactions, the National Securities Clearing Corporation, the commission's self-regulating organization that processes most fund transactions, wants to compartmentalize and standardize the data of another industry - separately managed accounts.

The mutual fund scandal took a surprising turn last week when Alliance Capital Management agreed to lower management fees on its funds as part of a landmark $600 million settlement that could set an alarming precedent.

The scandal of 2003 is such a pivotal event since the advent of the mutual fund industry in 1940 that there are two salient facts about it that will undoubtedly be remembered in years to come. Its magnitude and its stealth.

It's your worst nightmare come true. Regulators called yesterday to inform of their investigations into your firm's practices, and already some of the toughest news reporters in the industry have called for comments --some more than once. You are still trying to absorb the information, figure out what's what and find out who did what, when, and why?

WASHINGTON - A judicious dose of investor psychology could mean a big difference in marketing retirement products.

NEW YORK - New York State's top regulator, Eliot Spitzer, took a short break from stamping out mutual fund abuses earlier this month, long enough to raise $2 million at a fundraiser as the attorney general eyes a bid for governor.

To restore industry confidence and nudge investors' interests back to the forefront, the Investment Company Institute told the SEC last Monday it supports the curtailing of soft dollars and banning of "directed brokerage." Commenting on the proposal, ICI Chairman Paul G. Haaga, Jr. said the proposed changes would "benefit fund investors by substantially diminishing potential conflicts of interest and strengthening the operating integrity of mutual funds."

Two Managers Leave AIM As Firm Reshuffles Funds

(Reprint from 12/9/02 MFMN)

Things had to get better in 2003. That was the mantra heading into the year. After all, the market was entering its third consecutive down year and still reeling from the fallout from the bubble-burst and the ongoing war on terror. Logic only had it that things had to move upwards, because they sure couldn't get worse.

If we were to stage a "Best of" show about the year's impact on job prospects, Eliot Spitzer would be a good choice to serve as our affable host. And you, as a compliance professional, would no doubt have a chance to walk up to the stage, collect your trophy, and give the New York Attorney General your personal thanks for improving your job prospects tenfold.