Keeping an eye on Washington

APR 01, 2011
Six measures that could affect the mutual fund industry: 1. Mutual funds or fund companies could be designated systemically important financial institutions by the Financial Stability Oversight Council, bringing with it regulation by the Fed and substantial capital requirements. 2. Provisions in Dodd-Frank could bring transparency to opaque investments such as interest rate swaps. 3. Under a recent SEC rule, credit ratings will not be used to determine whether investments meet minimum credit risks, making it harder to determine creditworthiness. 4. Hedge fund advisers who have to register with the SEC may decide that if they are going to be regulated, they might as well start a mutual fund, increasing competition for existing funds. 5. Under a proposal by the President's Working Group on Financial Markets, a bank would be established to buy securities from money market funds, limiting liquidity concerns during periods of financial stress. 6. The SEC's efforts to eliminate or change 12(b)-1 fees have been put on the back burner.

Latest News

Edward Jones facing more race bias claims in new lawsuit
Edward Jones facing more race bias claims in new lawsuit

A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.

Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team
Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team

Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management