December 04, 2003

SEC Info on Mutual Fund Scandals

You can access the SEC's Press Release regarding action taken in a meeting to address the mutual fund scandals here. According to the press release, the SEC voted to do the following:

  • The Commission voted to propose a rule requiring that fund orders be received by 4:00 p.m.
  • The Commission also voted to adopt a compliance rule that will require funds and advisers to (i) have compliance policies and procedures, (ii) annually review them and (iii) designate a chief compliance officer who, for funds, must report to the board of directors.
  • The Commission voted to propose enhanced disclosure requirements. These enhancements would require funds to disclose (i) market timing policies and procedures, (ii) practices regarding "fair valuation" of their portfolio securities and (iii) policies and procedures with respect to the disclosure of their portfolio holdings.

You can access the speech by SEC Chairman, William H. Donaldson, in his opening statement at the meeting here.

You can also access a speech by SEC Commissioner, Harvey J. Goldschmid, entitled "Mutual Fund Regulation: A Time for Healing and Reform" and a statement of Division of Investment Management Director Paul F. Roye here (via the American Benefits Council website.)

Finally, the American Benefits Council website has also posted the SEC Fact Sheet on the Mutual Fund Scandals.

Posted by B. Janell Grenier at December 4, 2003 10:38 PM