March 27, 2013

SEC Grants No-Action Letter Allowing Flexibility when Advisers Seek Shareholder Vote to Approve Advisory Contracts

The SEC granted no-action relief to the ING Funds (“Funds”) permitting them to obtain shareholder approval of new investment advisory agreements with the investment advisers (“Advisers”) to the Funds at a single meeting of shareholders, which would occur at the commencement of a series of related transactions that may be deemed to result in one or more “assignments” of the Funds’ advisory agreements.

Continue reading...

March 26, 2013

Morgan Keegan Directors and SEC Will Settle Charges

The eight former independent directors of the Morgan Keegan mutual funds have agreed to settle with the SEC in connection with a civil enforcement action brought by the SEC. The former directors sat on the boards of five Morgan Keegan mutual funds that incurred significant losses during the financial crisis.

Continue reading...

March 26, 2013

SEC Charges California-Based Hedge Fund Analyst and Two Others with Insider Trading

The SEC brought administrative charges against Matthew Teeple of San Clemente, California for insider trading. The SEC alleges that he was tipped in advance of a July 2008 announcement that Foundry Networks Inc. had agreed to be acquired by Brocade Communication Systems Inc. for approximately $3 billion.

Continue reading...

March 22, 2013

Brokerage CEO and Hedge Fund Manager Charged with Insider Trading

The SEC brought charges against a Houston-based hedge fund manager and his firm accused of defrauding investors in two hedge funds. The SEC further alleged that the hedge fund manager steered bloated fees to a brokerage firm CEO, who also was charged in the administrative action.

Continue reading...

March 22, 2013

SEC Charges Rengan Rajaratnam with Insider Trading

The SEC charged Rajarengan “Rengan” Rajaratnam for his role in the massive insider trading scheme spearheaded by his older brother Raj Rajaratnam and hedge fund advisory firm Galleon Management.

Continue reading...

March 18, 2013

Remarks by Norm Champ at the ICI’s 2013 Mutual Funds and Investment Management Conference

In his March 18 remarks to the ICI’s 2013 Mutual Funds and Investment Management Conference, Norm Champ, the SEC’s Director of the Division of Investment Management, said that the Division is working to enhance its “eyes and ears” and to get “a better and more first-hand understanding of the workings of the fund industry.”

Continue reading...

March 18, 2013

SEC Obtains Asset Freeze Against Massachusetts-Based Investment Adviser For Stealing Money from Client

The SEC obtained an emergency order from a U.S. District Court (Massachusetts) freezing a Massachusetts-based investment adviser charged with stealing money from clients who were given the false impression they were investing in a hedge fund.

Continue reading...

March 15, 2013

SEC Issues Guidance Update on Social Media Filings by Investment Companies

The SEC published a guidance update from the Division of Investment Management staff that clarifies the obligations of investment companies to seek review of materials posted on their social media websites.  Investment companies are required to file certain advertisements for review by the Financial Industry Regulatory Authority ("FINRA"). 

Continue reading...

March 5, 2013

SEC Imposes Sanction on Mutual Fund Investment Adviser

The SEC issued a cease and desist order against Peak Wealth Opportunities LLC and David W. Dube that, among other things, revoked the investment adviser registration of Peak Wealth and barred Mr. Dube from the advisory industry.

Continue reading...

March 4, 2013

Division of Investment Management Outlines Regulatory Initiatives

A speech written by Norman Champ, the SEC’s Director of the Division of Investment Management, and delivered by David Grim, the SEC’s Deputy Director of the Division of Investment Management, at the Investment Management Institute 2013 in New York, outlined the Division’s short-term and long-term regulatory goals.

Continue reading...

Menu