ATTHEBELL

SEC comes to call in Y2K watch

Seeking to drive home the point that it isn’t taking year 2000 compliance lightly, the Securities and Exchange Commission has begun paying pop-in visits to large and small advisers alike. “I was surprised out of my mind,” says Madeline I. Noveck of Novos Planning Associates Inc. in New York, after an SEC auditor showed up last week on two hours notice. “They want to see that people are allocating staff and dollars” to ensure systems are compliant, she says. An SEC spokesman says “part of our sweep involves Y2K readiness,” but he declines to comment on specific initiatives. The agency last week began requiring mutual funds and registered investment advisers to disclose what steps they are taking to ensure that their computer systems and programs don’t read 2000 as 1900.

MFS names Ballen president

MFS Investment Management has named John W. Ballen president and chief investment officer. Former President Jeffrey L. Shames moved up to head the Boston-based firm, which runs $90 billion in assets, after chairman and chief executive officer Keith Brodkin died in February. Mr. Ballen will continue to serve as portfolio manager of MFS Emerging Growth fund. Succeeding Mr. Ballen as chief equity officer is executive vice president Kevin R. Parke, who will retain his role as director of equity research.

MFS, which has $90 billion in assets, also is boosting the number of seats on its board of directors to nine from five to include more members of its internal management committee.

CPA group near wrap deal

The Florida Institute of Certified Public Accountants tentatively has inked a deal with Lockwood Financial Services Inc. to provide investment products and back-office services for a venture it will roll out this fall, sources say. The institute’s board backed the agreement, which is still subject to negotiation over terms, less than two weeks ago. An institute official declines to comment. The institute has registered as an investment adviser and formed a for-profit subsidiary that would charge its members consulting fees to help them set up adviser practices. Malvern, Pa.-based Lockwood would offer wrap account services.

Exchanges weigh their options

Top officials of Chicago’s two biggest futures exchanges last week discussed a range of possible joint ventures — including steps toward an outright merger. Industry sources told InvestmentNews and sister publication Crain’s Chicago Business that the talks occurred daily, as another slump in seat prices added urgency to efforts to counteract competitive threats to the city’s futures business. The Chicago Mercantile Exchange was said to have proposed talks with the Chicago Board of Trade on using a common electronic trading system. The Board of Trade insisted the summit include merger topics — an issue at which the Merc reportedly balked. However, insiders at the exchanges said meetings were continuing late last week.

IPO at LPL? Not so fast

Those hoping to get in on an LPL Financial Services initial public offering may have a very long wait. Todd Robinson, the Boston brokerage’s president, told his staff at an annual sales meeting recently that if the firm were to go public it wouldn’t be for at least five years and maybe as long as 20. Jim Putnam, managing director of national sales, quoted Mr. Robinson as saying: “The most logical long-term solution for us to stay independent and avoid selling proprietary products would be to go public.”

Big push for Aetna load family

Aeltus Investment Management Inc. has expanded marketing of parent Aetna Inc.’s $2 billion load fund family. Aeltus, which manages the 19 funds, has signed more than 90 distribution agreements within the last 180 days, says Frank Litwin, a managing director with Hartford, Conn.-based Aeltus. Instead of just being sold through variable annuity programs, Aetna agents and retirement plans, the funds also will be sold through broker dealers and planners.

Colonial chief adds Stein Roe

Boston-based Liberty Financial Cos. has tapped Stephen E. Gibson, president of its Colonial Group unit, to also head its Stein Roe fund family.Thomas W. Butch, chief executive of Chicago-based Stein Roe & Farnham, will remain president of the Stein Roe funds and report to Mr. Gibson. Stein Roe president Hans Ziegler will become president of a new division, Stein Roe & Farnham Private Capital Management. The fund families have a combined $25 billion in assets.

Dueling Social Security plans

Senate Finance Committee Chairman William Roth, R-Del., has introduced a Social Security funding plan that competes with one proposed by his GOP colleagues Pete Domenici of New Mexico and Phil Gramm of Texas. The Roth plan would use half the $583 billion expected federal budget surplus over five years to set up personal retirement savings accounts.