SEC's top mutual fund cop stepping down

The U.S. Securities and Exchange Commission said Andrew “Buddy” Donohue -- an official involved in overseeing the mutual fund and investment advisory industry over the last four years -- will step down from his post as the agency's director of the Division of Investment Management. The SEC made the announcement in an e-mail statement today. Mr. Donohue will depart in November. "Buddy has been an effective leader and investor advocate during his tenure at the Commission. His vast knowledge of mutual funds and the investment advisory landscape has been invaluable in advancing several vital regulatory initiatives," said SEC Chairman Mary L. Schapiro, in a statement posted on the agency's website. "We are grateful for his practical insights and innovative guidance, and thank him for his tremendous commitment to public service." Mr. Donohue, who was the global general counsel at Merrill Lynch Investment Managers before he joined the SEC, was credited in the SEC's statement with developing a number of major regulatory initiatives in the $39 trillion asset management industry during his tenure. The statement cites his contributions to increasing investment adviser custody rules and improvements in the oversight of money market funds. Mr. Donohue was also acknowledged for his contributions to recent proposals that would overhaul 12(b)-1 fees in the mutual fund industry.