Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.

• Exclusive Online Only Content
• Free Daily Email News Alerts
• Asset Management Blogs

April 26, 2010

Past Issues

Mutual Funds

Week in Review

AIG May Sue Goldman, Schwab Settles YieldPlus Lawsuit for $200 Million, Clinton Admits Error on Deregulating Derivatives in 2000 Commodity Futures Act, CDO in Goldman Case Cut To 'D' by S&P in May 2009, Money Funds Hemorrhage Record $324.4B in 1Q10, XBRL Launches iPad and iPhone Apps, Crisis Inquiry Commission Subpoenas Moody's, Vanguard Says 75% of 401(k)s Include Target-Date Funds, BlackRock Bond Funds Aimed at New Opportunities, and Japan to Champion World's Green Technology: SPARX.

Regulation & Compliance

Large Traders Worry New Rules Will Compromise Info

WASHINGTON -- Industry leaders are worried that newly proposed regulations-such as the financial reforms being debated by the Senate and the Securities and Exchange Commission's large trader reporting system-would seriously hinder market activity. But officials argue that such changes are necessary to bring markets out of the dark. "To better oversee the U.S. securities markets, the Commission must be able to readily identify large traders operating in the U.S. securities markets and obtain basic identifying information on each large trader, its accounts and its affiliates," said SEC Chairman Mary Schapiro. "In addition, to support its regulatory and enforcement activities, the Commission should have a mechanism to efficiently track and promptly obtain trading records concerning large traders."

Ops & Tech

IT Under the Spotlight as Adviser Migration Builds

The continued migration among wirehouse advisers is creating tremendous operational pressures on asset management, brokerage and operations companies. Top producers expect to get up and running without a hitch. Consequently, non-wirehouse firms are scrambling to implement the necessary infrastructures to support expat advisers with the same or better technical resources they left behind. Research firm Discovery tracked record movement of registered representatives, including financial advisers, from the bulge-bracket firms this past year. Migrations eased somewhat overall at the beginning of 2010, but in January, more than 350 wirehouse brokers moved to another wirehouse, a regional firm, an independent or a bank.

Governance

Robust Board Oversight Can Squelch Lawsuits

WASHINGTON -- A robust, well-documented oversight process by mutual fund boards can help to keep investor lawsuits at bay, but good documentation is not enough. Experts say boards must also stay on top of a wide range of developments in derivative exposure and potentially misleading advertisements, among other things. The recent, well-publicized Supreme Court decision Jones v. Harris Associates has reaffirmed the crucial role boards play in setting fund fees, and has heaped even more responsibility on directors.

Executive Moves

Executive Moves

Putnam Replaces Managers on Three Funds, Russell Selects O'Keeffe as Director of ETF Licensing, Elwood Joins Cipperman and BNY Plans to Close Nine Offices.