Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fund Mini-Sweep One of 80 Underway Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, September 29, 2004

Fund Mini-Sweep One of 80 Underway

by: Sean Hanna, Editor in Chief

More details about the SEC mini-sweep of fund firms were reported by Tuesday morning. Initial reports of the SEC actions on Monday focused on events in Boston, however, follow up reports confirm that the SEC is targeting as many as two dozen fund firms nationwide. SEC Chairman William Donaldson also said Monday that he is looking for new tools to help with enforcement. Surprisingly, no fund firms have confirmed receipt of the letter.

Boston Globe reporter Beth Healy reports Tuesday morning that the Boston SEC office sent a letter covering 23 "detailed items" to up to two dozen mutual fund companies. As initially reported, the SEC is investigating whether fund managers, traders, and other high-ranking insiders made any improper trades in funds over the past three years.

The letter asks for information within the month on items ranging from lists of employees to written policies on market timing, rapid trading and the minutes of meetings held by fund trustees, according to Healy's report.

Healy adds that no fund firms have admitted to receiving the letter, but that a number (including Putnam Investments, MFS Investment Management, Evergreen Investments, Pioneer Investments, State Street Research & Management Co., Eaton Vance Management, and the American Funds) say they are unaware of it. Meanwhile, Fidelity Investments, Vanguard Group, and the Dreyfus Funds declined to comment to Healy.

One reason why fund firms may not be able to confirm receipt of the letter is the newly energetic level of SEC activity.

Lori A. Richards, head of the SEC's newly created Office of Risk Assessment, told the Washington Post that the SEC now has roughly 80 mini-sweeps underway. Those sweeps are gathering information about the functioning of all areas of the financial services industry, including the brokerage and mutual fund industries.

"We've got to be nimble at identifying problems before they become embedded in a large number of firms," Richards told the WaPo, adding that the mini-sweeps "will help us determine and prioritize areas of emerging risk and allow me to deploy examiners to . . . those highest-risk areas."

The thrust of the WaPo article is that SEC Chairman William Donaldson is hoping to shift the enforcement emphasis at the SEC from investigating wrongdoing after the fact to identifying possible problems up front and implementing fixes before widespread damage is done.

Donaldson's model for the new SEC effort is the Federal Reserve and the nation's banking system. He hopes that the SEC staff will be able to work with fund firms and broker-dealers much as banks work with the Fed to quietly fix problems.

The new Office of Risk Assessment is part of that effort. So also was the May hiring of Charles A. Fishkin, a former trader and Fidelity Investments risk-management executive.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use