Compliance

PALM DESERT, CALIF.—As investors have fled equity funds, the industry’s move into alternative investments has become one of the biggest concerns of directors of the board.

Mortgage real-estate investment trusts have been exempt from the Investment Act of 1940, which regulates the fees that can be charged to investors and limits the amount of leverage a fund can use. But the Securities and Exchange Commission said last month that it had initiated a review of that exemption, as mortgage REITs are beginning to look more like mutual funds.

Crime lore has it that when the prolific stick-up artist Willie Sutton was asked why he robbed banks, he glibly responded, "Because that's where the money is." And in the 21st century, Sutton's maxim is alive and well in the cyber realm.

An accountant with a New York accounting firm that handles smaller broker-dealers is warning advisors who work at such firms that if their employer is a clearing organization, they should pay attention to how well it is planning for a continuation of business under new rule changes being mulled by the Securities and Exchange Commission.

A hearing before a subcommittee of the House Committee on Financial Services Tuesday allowed representatives from across the financial advisory industry to air their views about whether a new self-regulatory organization is necessary to oversee advisors and broker-dealers and, if it is, how it should be constructed.

The concept release is out. And the Securities and Exchange Commission wants to know: Just how much leverage should a mutual fund have?

WASHINGTON - Although Federal Reserve Board officials promised to unveil a long-awaited package of key Dodd-Frank rules by the end of the summer, the central bank is likely to need more time to complete them.

Investment advisors could eventually have a national self-regulatory organization akin to the Financial Industry Regulatory Authority soon, if draft legislation introduced by an Alabama Congressman becomes law. But it will not come without a fight.

The Securities and Exchange Commission is in the early stages of a major examination into the operations of hedge fund companies and investment banks that engage in high-frequency trading.

The Securities and Exchange Commission said it will seek public comment on a plan to conduct retrospective reviews of its existing regulations.

WASHINGTON — Although Federal Reserve Board officials promised to unveil a long-awaited package of key Dodd-Frank rules by the end of the summer, the central bank is likely to need more time to complete them.

Although Federal Reserve Board officials promised to unveil a long-awaited package of key Dodd-Frank rules by the end of the summer, the central bank is likely to need more time to complete them.

A Financial Industry Regulatory Authority arbitration panel has ordered Wedbush Inc. and one of its former brokers to pay $2.9 million in damages and fees to an elderly investor who allegedly fell victim to a faulty investment scheme.

Bank regulators have long kept state officials at arm's length. But the Consumer Financial Protection Bureau is forging close relationships with state attorneys general to enforce consumer banking laws.

The legislation may be a hit or miss, depending on whom you ask. What's good in this mixed bag for advisors and what should they be mindful of?

How to make the most of professional relationships without running afoul of regulations.

Section 165 has yet to happen but it should have the biggest impact.

The Securities and Exchange Commission is seeking public comment on the use of derivatives by mutual funds over the next 60 days after publication in the Federal Register. If it determines that new regulations to protect investors are necessary, the SEC will consider passing and enforcing them.

A bad day for financial engineers in Chicago continued Wednesday, when the Securities and Exchange Commission said the assets of a quantitative trading firm were frozen.

Compliance professionals don’t think the Dodd-Frank Wall Street Reform and Consumer Protection Act will lead to a significant increase in compliance spending this year and they expect more money will be allocated to technology rather than education and consulting, according to a new study conducted between March and April by National Regulatory Services (NRS).