Compliance

In a move that surprised the industry Wednesday, the Financial Industry Regulatory Authority’s head of enforcement announced to her employees that she would step down.

But the organization remains strongly opposed to doing away with a steady net asset value, which is usually $1.00 per share, and is a fundamental feature of money market funds.

Federal Reserve Board Chairman Ben Bernanke offered a vigorous defense of his agency's oversight of holding companies and state banks, rejecting a Senate bill that would strip them of supervisory powers over all but the biggest institutions.

Preemption process would be complex, more burdensome

The latest regulatory reform proposal from Senate Banking Committee Chairman Chris Dodd would have far-reaching implications for day-to-day operations at most banks and thrifts, changing which regulators oversee them and potentially broadening the number considered systemically important.

Far from being the big winner under Senate Banking Committee Chairman Chris Dodd's regulatory reform bill, the Federal Reserve System would undergo radical changes — including a likely consolidation of its 12 district banks — if the legislation were enacted.

This year marks the 30th anniversary of the 401(k), the revolutionary retirement savings vehicle that has been annihilating pension plans, empowering individuals to take part in the stock market—and that left retirees with the misfortune of leaving the workforce in 2000 or 2008 badly off.

After one 2030 target-date fund lost 41% in 2008, legislators in Washington went up in arms against the fund category. One of the most controversial proposals would have limited equity exposure in such funds, but the industry fought back on the grounds the 40 Act gives asset managers leeway to determine asset allocation on their own.

But the direct-pay subsidy rate would shrink from the current 35% of interest costs to 33% in 2011, 31% in 2012 and 30% in 2013, under a draft of a second jobs bill unveiled yesterday by House Ways and Means Committee chairman Sander Levin, D-Mich.

Senate Banking Committee Chairman Chris Dodd on Monday released a broad outline of his regulatory reform bill, which heavily reflects input from Republicans who still say they oppose the bill.

The decision by the Democratic Senator from Connecticut has frustrated investor groups who want the more stringent fiduciary standard to be applied to brokers as well as to financial planners who already abide by the rule.

Hidden, high 401(k) fees that do not decrease commensurately as plan balances rise are individually costing investors hundreds of thousands of dollars over a lifetime of saving, while enriching asset managers with billions.

The SPARK Institute has released the “Universal Small Employer Retirement Savings Program” report, in which it explains how universal plans would be less expensive and easier than automatic IRAs.

Proposed legislation by the Securities and Exchange Commission to have single family offices register as investment advisors is part of the financial regulatory reform negotiations currently being debated in the Senate.

Proposed new hedge fund rules in Europe would limit access to the market for fund managers and custodian banks outside the EU, U.S. Treasury Secretary Timothy Geithner has argued. Nonetheless, the European Commission is pressing ahead with the new rules.

The Internal Revenue Service is collecting information on approximately 20 Swiss banks, according a letter from UBS, one of the main banks it has been investigating.

Firms are grappling with how to best use the technology while not running afoul of regulators.

Reserve Management submitted court documents Thursday denying that it, founder Bruce Bent or his son Bruce Bent II intentionally tried to mislead investors in the flagship $62 billion Reserve Primary Fund into believing the now-defunct fund that broke the buck was solvent.

A bill to end private lenders' role in government guaranteed student lending — assumed to be on its way to quick enactment — has suddenly become a hotly contested debate.

Senate Banking Committee Chairman Chris Dodd's decision to try to negotiate a bipartisan regulatory reform deal with Republican Sen. Bob Corker was a mistake.