Compliance

NEW YORK -- Designated market makers are disappointed the Securities and Exchange Commission didn't grant them an exception to the new rule banning short sales on plummeting stocks, but they are already anticipating lucrative trading opportunities just before a stock hits the rule's sweet spot.

The U.S. Supreme Court's recent rejection of the fund fee case Jones v. Harris Associates will make it easier for shareholders to sue mutual funds for excessive fees, but it won't make it easier for them to take an excessive fee case to trial, let alone win.

As the distressed-asset market begins to stabilize, the Federal Deposit Insurance Corp. is shaking up the way it handles failed banks and their assets.

Charles Schwab Corp. violated federal laws when it failed to get shareholder approval before putting approximately half the assets of its YieldPlus mutual fund into uninsured mortgage-backed securities, a federal judge ruled.

In a case involving two former employees of Fidelity Investments, a federal judge has ruled that the Sarbanes-Oxley law protecting whistle-blowers at publicly traded companies also extends to mutual fund firms.

State regulators are urging Senate Banking Committee Chairman Chris Dodd to change a provision in the regulatory reform bill that they claim would force most large state banks to convert to national charters.

A key point of contention in the Senate regulatory reform bill comes down to a critical question: How much flexibility should the government have when a systemically important firm falters?

Victory Capital Management, the asset management arm of KeyCorp's KeyBank, says it is positioned to quickly expand the assets it manages in collective investment trusts, or CITs, for defined contribution plans, but the effort will not lack challenges.

ING plans to launch a registered indexed annuity called Select Multi-Index next month and is voluntarily registering it with the Securities and Exchange Commission in anticipation of Rule 151A.

A key banking industry argument against the creation of a consumer protection agency — that the new division would write rules that conflict with safety and soundness standards — is shaky.

Thanks to their robust disclosure policies, mutual fund companies are generally well-protected against investor lawsuits, but that won't stop lawyers from trying anyway.

The Securities and Exchange Commission is concerned that some mutual funds and actively managed and leveraged ETFs, in particular, may be investing too heavily in swaps and derivatives. If the staff determines that the investments are inconsistent with the leverage, concentration and diversification provisions of the Investment Company Act, it will cease granting exemptions going forward. Funds that already received exemptions would not be impacted, the SEC said.

Even though Senate Banking Committee Chairman Christopher Dodd introduced his financial regulatory reform bill earlier this month without a key provision on the fiduciary standard, some industry observers who support a more stringent standard are cautiously optimistic that tighter reforms will be implemented.

Even though Senate Banking Committee Chairman Christopher Dodd, introduced his financial regulatory reform bill earlier this month without a key provision on the fiduciary standard, some industry observers who support a more stringent standard are cautiously optimistic that tighter reforms will be implemented.

The Obama administration plans to announce Friday that it is revamping its foreclosure prevention plan to encourage lenders to offer principal write downs to troubled borrowers.

FINRA has flexed its enforcement muscle several times in recent days but there is still a high level of anticipation to see more regulatory oversight.

Southwest Securities Inc. has agreed to pay $470,147 to settle charges with the Securities and Exchange Commission for violating an anti-pay-to-play rule by co-underwriting Massachusetts bond deals within two years after its former senior vice president made political contributions to state Treasurer Timothy Cahill.

Timing of Senate Action Is Unclear

President Obama's successful fight to pass health-care reform has given a bill to revamp the financial system a dramatic boost, lawmakers from both parties said Wednesday.

Pending hedge fund regulations in the European Union are “protectionist [and] discriminate against U.S. firms and activities,” Sen. Charles Schumer (D-N.Y.) said in a letter to Treasury Secretary Timothy Geithner.