Law and regulation

The Securities and Exchange Commission has received an emergency court order to halt a suspected Ponzi scheme targeted to Haitian-American investors.

Thanks to an independent effort by New York insurance regulators, MetLife expects to reduce by about $1.8 billion, or more than 30%, the amount it must post to back up its variable annuity living benefit guarantees, The Wall Street Journal reports.

Neuberger Berman’s board of directors has selected Tom D. Seip as non-executive chairman and Robert Conti as chief executive officer. The two men succeed Peter E. Sundman, who is resigning.

The U.S. could see a 70% decline in the number of mutual fund families over the next five years unless regulations are changed to put them on a more equal footing with hedge funds, according to a new report by the Boston research firm Celent, titled: “The Global Credit Crisis: Implications for North American Wealth Management.”

Most executives wouldn't consider themselves "fortunate" if they took over one of the largest fund companies weeks before an historic market collapse.

All asset managers are looking at cutting their budgets next year, according to a survey of 100 firms by SwanDog Strategic Marketing and Financial Research Corp. Two-thirds are looking at cuts of between 10% and 20% and the remaining third are expecting to slash their budgets by 30% or more.

Ready or not, the deadline to update 403(b) plans is here.

Financial industry analysts are anticipating a wave of new regulations to come out of this financial crisis, but with any luck, mutual funds will escape a direct hit.

Citing steep redemptions and continued market declines, Fidelity Investments Chairman Ned Johnson indicated the firm’s 7% layoffs, or loss of 3,000 jobs, could surge if conditions worsen, the Boston Herald reports.

Personal financial columns are beginning to warn investors that fund fees could rise in 2009, as mutual fund companies try to grapple with fewer assets under management.

NEW YORK - "There is so much stimulus in the economy. The punchbowls are at the party, they're spiked-but no one is drinking yet." That was the apt summary of the current economic and investment picture by Rodney Olea, manager of the AHA Limited Maturity Fixed Income Fund, speaking at SunStar's press briefing for Lipper Leaders here last week.

Everywhere you look these days, people are talking about green cars, green energy, greenhouse gases and even green mutual funds. This new demand for all things green is enough to make some money managers green with envy.

Reserve Funds has added insult to injury, literally, to the investors in its Primary Fund. The fund, which broke the buck on Sept. 16 and has been struggling to return investors’ assets ever since, is now valuing the remaining balance at 98.5 cents per share.

The signs are clear, but few firms are making decisions that will benefit them in the long term. The financial crisis is prompting firms to feel forced to react and make changes to their short-term and long-term strategies.

Slowly but steadily, the Securities and Exchange Commission continues on the long journey toward adopting international tax and accounting standards, with the recent release of its long-anticipated roadmap.

More than 110,000 people working in finance in the U.S. have lost their jobs so far this year, but that could nearly double to more than 200,000 in the final weeks of the year, the Anniston Star reports.

With redemptions reaching exceptionally high levels, mutual funds are hoarding cash like never before, BusinessWeek reports. Funds lost $68 billion in October and appear to be on track to top those losses this month. By comparison, in October 2007, mutual funds lost $11.3 billion and $9.94 billion the following month.

Reserve Funds will distribute $14 billion to investors in the Primary Fund on or around Dec. 5.

Even as equity values continue to fall and economic woes mount, certain financial services firms will emerge as leaders, and the ones that do will be those that focus on long-term success, according to a report released Monday by management consulting firm Casey, Quirk & Associates and asset management compensation consulting firm McLagan, titled “Crisis in Asset Management: Industry Profitability Under Siege.”

Massachusetts lost another 7,000 in October, the worst month for the state’s labor market since March 2005, the Patriot Ledger reports.