Law and regulation

Massachusetts-based financial advisors could soon have to submit to a criminal background check under a proposed reform to the registration process in that state.

The House Ways and Means Select Revenue Measures Subcommittee held a hearing this week to discuss possible tax reforms on financial products such as derivatives.

Norm Champ, director of the Securities and Exchange Commission's Division of Investment Management, last week took the first steps in meeting and speaking with members of the Investment Company Institute.

Eagle Asset Management is making a sub-advisory change for its Eagle Capital Appreciation Fund.

“The primary reason for the drop-off in fines was because there were no auction rate securities cases in 2012,” said Brian Rubin, partner in the Washington, D.C., law firm Sutherland Asbill & Brennan.

Regulators and academics are starting to look at low volatility as an integral part of the buildup toward financial meltdowns.

Federal Reserve Board Chairman Ben Bernanke on Wednesday said regulators would take additional steps to eliminate the problem of "too big to fail" if current efforts fall short.

A bipartisan pair of lawmakers introduced legislation that would make it easier for workers to repay loans or withdrawals they take from their employer-sponsored 401(k) plan, drawing praise from a leading trade group representing retirement-plan advisors.

A Financial Industry Regulatory Authority arbitration panel’s rejection of compensatory damages requests from both Morgan Stanley and one of its former brokers is the latest example of how deals for sign on bonuses can sour when a new position does not work out.

A former Massachusetts CFP and his colleague spent $1 million of their clients’ funds on personal expenses, including fast food, legal fees and ATM withdrawals at casinos, the SEC alleges.

Four firms agreed to pay $105,000 in fines for violations of pricing, political contribution, supervisory and other rules of the Municipal Securities Rulemaking Board.

The Senate Banking Committee approved Mary Jo White’s nomination to lead the Securities and Exchange Commission on a bipartisan vote, clearing her way to become the first ex-prosecutor to lead the agency.

BlackRock is cutting about 300 jobs, extending a reorganization that included the shakeup of its investment units last year.

Federal regulators would “like to codify exemptive relief” from provisions of the Investment Company Act of 1940, so they can focus on more innovative fund applications.

Through less promotional posts, advisors may be able to avoid the red tape.

Denver-based Cambiar Investors will close the Cambiar Small Cap Fund (CAMSX) to new investors on April 30.

Wells Fargo CEO John Stumpf said banks are no longer "too big to fail," and admonished fellow bankers to accept the existence of the Consumer Financial Protection Bureau.

Forward Funds is liquidating a pair of alternative mutual funds.

As the Securities and Exchange Commission's enforcement and litigation activity in 2012 demonstrates, the agency's focus on municipal market enforcement has increased dramatically, and this trend seems likely to continue under the SEC's new leadership.

A new report on FINRA's 2012 actions suggests the self-regulatory body is getting tougher.