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Sarbanes-Oxley News & Developments
SEC Regulators Prepare To Take On Fund VillainsIrate regulators plan to throw the rule book at miscreants involved in current fund-trading scandal.
> > The SEC Chairman William H. Donaldson listed several rule amendments that the SEC plans to formally propose next month. The goal is to curb the alledged fund-trading abuses, namely late-day trading and market-timing.
The SEC will also tackle issues not mentioned by Chairman Donaldson which deal with how funds tell investors where their money is invested. For decades funds have only been required to list their full portfolio holdings twice a year in shareholders reports. The industry fought efforts to require more frequent holdings disclosure, claiming opportunistic traders would trade ahead of funds, thus reducing returns for fund investors.
Source: Wall Street Journal
Published:2003-10-14
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