Special Program Root Tag

Strong Capital Management shareholders will be reimbursed if the probe by New York State Attorney General Eliot Spitzer finds that the company traded questionably, the company said in a letter dated Friday.

The Securities and Exchange Commission issued a 134-page report Monday recommending that hedge funds register as investment advisors with the SEC. The SEC said that while it has historically allowed hedge funds to exist without registering, regulators are now concerned that the recent rapid growth of hedge funds, particularly among institutional investors, and increasing cases of fraud, now warrant oversight. The most recent high-profile case of fraud is the investigation into market timing and late trading by Canary Capital Partners.

An investigation into possible insider trading by Morgan Stanley has reportedly begun, stemming from the firm’s acquisition of Dean Foods stock in March 2001.

Despite recent criticism that not only the mutual fund industry but the Investment Company Institute itself is in need of reform, the ICI issued a statement saying it is cooperating with regulators in order to halt the downward spiral that the mutual fund business has fallen into.

Curian Capital to Sell SMAs Through Midsize Banks

The winds of change are sweeping the floor of the New York Stock Exchange, as federal regulators look to overhaul the world's biggest marketplace.

Industry-wide late processing of mutual fund trades has some in the industry worried. The practice is commonplace and perfectly legal, so why the concern?

As financial services firms continue to launch managed account platforms, a handful of banking companies have begun offering unified managed accounts - what many believe is going to be the next generation of the hot product.

Ahhh, there's nothing like a good scandal to fuel additional prospectus disclosures being pushed out to financial advisers and investors.

The Securities and Exchange Commission approved a new rule requiring mutual fund companies to provide more balanced information in their advertisements when promoting fund performance.

Bond funds had their worst month in at least 20 years and possibly ever, according to data released by Lipper.

Joseph Grano will retire from his position as head of UBS' wealth management division on Jan. 1, and Mark Sutton, currently president, will assume his position. Grano will remain as chairman, however, until the middle of next year.

New York State Attorney General Eliot Spitzer's complaint against Canary Capital Partners says that market timing and late trading can cost investors as much as $4 billion a year, but another report puts it in terms that may hit home a little harder for many investors. Timing can sap a fund's returns by as much as 2% a year, according to published reports.

Sirach Capital Management has hired Valerie M. Kampe as principal and portfolio manager. Kampe is now the lead manager for Sirach's private-client business. She was previously a vice president and senior portfolio manager with The Harris Bank.

Bear Stearns has hired Richard Devine, Howard Franzblau and Michael Silverstein to be managing directors in its private-client services division. All three, based in New York, provide investment advisory services and alternative investments to high-net-worth individuals and pension plans. Each has about $550 million of assets under management.

Wachovia Insurance Services has hired two senior executives to newly created positions in recent months. In July, Stewart McDowell joined the company as COO. More recently, Karen J. Lehman is now CFO. McDowell came from Willis Group Holdings, an insurance broker. Lehman had been CFO at Palmer & Cay.

Gabelli Group Capital Partners has selected the son of Gabelli Asset Management's founder, Mario Gabelli, to serve in the new position of president. Marc Gabelli has been with the company for 10 years and will remain active in portfolio management. He will, however, give up his position as head of the firm's alternative investment group.

As part of Financial Research Corp.'s strategy to enhance its market research capabilities, the company has hired additional analysts as part of its research group.

ORLANDO, Fla. - Compliance automation is necessary in this day and age, but it's no way to shrink the bottom line, said experts speaking on the Investment Company Institute's Tax and Accounting Conference panel on using technology for compliance and disclosure.

That was the conclusion reached by a team of researchers at mutual fund tracking firm Lipper of New York, after carefully studying the relationship between fund size and performance.