January 27, 2010

SEC Adopts Amendments to the Money Market Fund Rules

The SEC adopted amendments to Rule 2a-7 under the Investment Company Act of 1940 (1940 Act) that, among other things, require money market funds to have greater liquidity, limit their riskier investments and to allow funds that do not always maintain a stable $1 share value.  Please see http://xlo3.wpengine.com…

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January 26, 2010

Chairman Schapiro Speaks at CCOutreach Conference

SEC Chairman Mary L. Schapiro spoke at CCOutreach National Seminar in Washington, D.C.

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January 20, 2010

Former Evergreen Mutual Fund Portfolio Manager Settles Insider Trading Charges

The SEC charged Charles J. Marquardt with insider trading in the shares of the Evergreen Ultra Short Opportunities Fund (Ultra Fund), a mutual fund that invested primarily in mortgage-backed securities.

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January 14, 2010

SEC Issues Policy Statement Concerning Cooperation by Individuals in its Investigations and Related Enforcement Actions

The SEC issued a policy statement setting forth the analytical framework it uses to evaluate cooperation by individuals when it is conducting investigations.  The SEC stated that the framework serves the following two important purposes: it promotes the fair and effective exercise of discretion by the Commission, and it enhances confidence on the part of the public and cooperating individuals that decisions regarding cooperation in the SEC's investigations and related enforcement actions will be made in an appropriate and consistent manner.

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January 14, 2010

CFTC Holds Hearings on Proposed Rules that Would Impose Limits on Energy Positions and Hedge Exemptions

The CFTC considered a proposed rule that would impose energy position limits and hedge exemptions on regulated futures exchanges, derivatives transaction execution facilities and electronic trading facilities.  Under the proposal, the CFTC would impose Federal position limits in several energy futures contracts.  Under the scheme, there would be limits on…

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January 13, 2010

Equity Market Concept Release Issued by the SEC

The SEC issued a report entitled Concept Release on Equity Market Structure."  The report reviews an evaluation of equity market structure performance and assesses whether market structure rules have kept pace with changes in trading practices and technology. 

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January 13, 2010

SEC Bans Broker-Dealers from Providing Customers Unfiltered or Naked Access to Exchanges and Alternative Trading Systems

The SEC proposed a new rule that would effectively prohibit broker-dealers from providing customers with "unfiltered" or "naked" access to an exchange or alternative trading system (ATS).  If adopted, the rule would require brokers with market access, including those who sponsor customers' access to an exchange, to put in place risk management controls and supervisory procedures. The SEC stated that among other things, the procedures would help prevent erroneous orders, ensure compliance with regulatory requirements, and enforce pre-set credit or capital thresholds.

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January 7, 2010

SEC Office of the Inspector General Posts Memorandum of Inquiry Related to SEC’s Putnam Mutual Funds Market Timing Investigation

The SEC filed a civil injunctive action against Charles R. Kokesh for his role in defrauding at least 21,000 investors in four business development companies (BDCs) through a variety of schemes and contrivances. 

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January 7, 2010

Former MFS Mutual Fund Portfolio Manager Settles Insider Trading Charges

Steven E. Nothern of Scituate, Massachusetts, who had previously been found liable for insider trading by a federal jury, settled insider trading charges with the SEC.  He agreed to pay a civil penalty of $460,000. 

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January 5, 2010

Investment Adviser CFO/CCO Hedge Fund Manager Barred from Advisory Industry

The SEC found that Mary Beth Stevens, the former chief financial officer and chief compliance officer of AA Capital Partners Inc. (AA Capital), an investment adviser, aided and abetted the misappropriation of more than $23 million by AA Capital and its former president, John Orecchio.

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