December 26, 2012

SEC Charges Portfolio Manager with Aiding and Abetting Rule 22c-1 Violation under the 1940 Act

An Administrative Law Judge issued an order finding that Lisa B. Premo willfully aided and abetted and caused Evergreen Investment Management Company, LLC’s violations of Sections 206(1) and 206(2) of the Advisers Act and Evergreen’s Ultra Short Opportunities Fund’s  violation of Rule 22c-1(a) under the 1940 Act.

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December 24, 2012

SEC Adopts New Rules Governing Transfer Agent Responsibilities with Respect to Lost Holders of Securities

The SEC adopted new rules requiring transfer agents, as well as broker-dealers, to conduct searches for holders of securities with whom they have lost contact. The new rules also require transfer agents, broker-dealers and certain other market participants to provide notifications to persons who have not processed checks that they have received in connection with their securities holdings.

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December 22, 2012

SEC Charges Advisory Firms and Portfolio Managers for Roles in Collapse of Midwest-Based Closed-End Mutual Fund

The SEC charged two investment advisers and two portfolio managers responsible for managing a Midwest-based closed-end mutual fund for their roles in the failure to adequately inform investors about the fund’s risky derivative strategies that contributed to its collapse during the financial crisis.

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December 11, 2012

SEC Chairman Schapiro to Leave the SEC on December 12, 2012

SEC Chairman Schapiro will resign from the SEC on December 12, 2012. Chairman Schapiro is one of the longest-serving SEC chairmen, having served longer than 24 of the previous 28 chairman. She was appointed by President Barack Obama on January 20, 2009. Commissioner Elisse Walters will act as temporary…

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December 10, 2012

Eight Former Mutual Fund Directors Found by the SEC to Have Failed in Properly Overseeing Asset Valuation

The SEC charged eight former members of the boards of directors (“Directors”) overseeing mutual funds for violating their asset pricing responsibilities under the 1940 Act.  The funds are RMK High Income Fund, Inc., RMK Multi-Sector High Income Fund, Inc., RMK Strategic Income Fund, Inc., RMK Advantage Income Fund, Inc. and (v)…

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December 6, 2012

SEC Lifts Ban on Actively-Managed ETFs that Use Derivatives

The SEC is partly lifting its nearly 3-year freeze on accepting filings for active ETFs that invest in derivatives. The SEC ceased approving exemptive applications filed by ETFs seeking to invest in derivatives in 2010, until it could complete a review of the issues raised by such ETFs. Most ETFs…

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December 5, 2012

SEC General Counsel to Resign from the SEC

General Counsel Mark D. Cahn will leave the SEC at the end of 2012 to return to the private sector. Mr. Cahn has served as the SEC’s General Counsel since February 2011 and counseled the SEC on issues ranging from enforcement actions, rulemakings, other administrative proceedings, and appeals. Prior to…

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