Regulation & Compliance Section

News

Labor Department Proposes Dollar-Based 401(k) Fee Disclosure

Projects Roughly $225 Million Annually in Lower Fees for Participants Due to Better Transparency

401(k) Debit Cards The Next Credit Threat?

‘We Absolutely Hate It’: AARP

Pensions Stimulate Economy, Congress Told

Plans Play Critical Role in Retirement Security

401(k) Debit Card Touted in Face of Congressional Attack

Reserve Management Maintains Plastic Keeps Withdrawals Small

Advisers Urging Investors to Short-Circuit Increase in Capital Gains

Many Expect Obama to Win & Are Advising Investors to Take Gains Off the Table

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Articles

Tax Warning to Hedge Funds Heading Overseas To Avoid Subprime Risks

The ongoing credit crisis saga has taken a tremendous toll on hedge funds due to their exposure to structured mortgage-backed assets-and for those heading or parsing trades overseas to avoid U.S. taxes: Beware. The contracting demand for mortgage-backed securities-which had been dramatically overvalued by brokers who pushed more than 600 varieties of these assets to hedge fund managers through unregulated, highly leveraged repos-precipitated the tightening of unsecured term funding.

Money Market Funds Called Upon to Make Non-Public SEC Filings

How serious are liquidity problems with money market mutual funds? Mercer Bullard, founder and president of Fund Democracy, believes they're serious enough to warrant an immediate rule requiring money market mutual funds to make non-public monthly electronic filings of their portfolios to the Securities and Exchange Commission. In fact, he's upset that so far, the only SEC reaction had been a secretary's acknowledgement of the receipt of his Jan. 16 rulemaking petition.

Samuel Israel III: The Great Hedge Fund Escape Artist

'I cheated my investors because I was afraid to admit my failure. I did not want the world to think I was not good enough and I did not want my family to see me as a failure.' Those are some of the choice, cowardly words from Samuel Israel III, the erstwhile Bayou Capital hedge fund manager who cheated investors out of $450 million, when begging the sentencing judge for leniency. Apparently, Israel believes he was justified in, and can earn sympathy for, ripping off his clients because he couldn't measure up to his prominent New Orleans family. His lawyer also pled on Israel's behalf, noting the swindler's pacemaker, back trouble and addiction to pain killers.

Hedge Fund Launches Fall to Eight-Year Low

WASHINGTON - Volatile market conditions and the credit crisis have put the hard brakes on new hedge funds. The number of hedge funds launched in the first quarter was the lowest for a quarter since 2000, while fund liquidations increased from a year earlier. There were 247 hedge funds launched in the first quarter, down from 251 a year earlier, according to Chicago's Hedge Fund Research. One hundred seventy hedge funds were liquidated in the three months, 23.2% more than in last year's first quarter.

Hedge Funds Fear New SEC Regulations

NEW YORK - The freewheeling days for hedge funds may be numbered. Depending on who gets elected to the White House in November, the next Securities and Exchange Commission may push to impose additional regulations on hedge funds that, many critics say, could strangle managers' ability to generate exceptional returns. Ironically, hedge fund experts say the best way for the industry to prepare for the new regulations may also be the best way to prevent the new regulations from happening.

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