Recent SEC News

SEC Chairman Announces Opening of Registration for “CCOutreach” National Seminar for 2006

On October 4, 2006, the Securities and Exchange Commission (“SEC”) announced the opening of registration for the annual CCOutreach National Seminar for mutual fund and investment adviser Chief Compliance Officers.  The National Seminar, which aims to enhance compliance by improving communication and coordination with CCO’s, will be held on November 14, 2006 at the SEC’s Washington, D.C. headquarters.

The National Seminar will include panel discussions with SEC staff and CCO representatives on the latest compliance developments relevant to CCO’s.  The National Seminar follows a series of regional seminars held by the SEC and will address questions and issues raised at those programs as well.

The National Seminar will be held from 9:00 a.m. until 5:00 p.m., November 14, 2006, at the SEC’s headquarters located at 100 F St., N.E. Washington, D.C.  20549.  Attendance is limited to 500 people, with CCO’s given priority on a first-come, first-served basis.  The seminar will also be webcast at www.sec.gov.

For the agenda and registration information for the CCOutreach National Seminar, go to http://www.sec.gov/info/ccoutreach.htm

BISYS Fund Services to Pay $21 Million to Settle Fraud Charges in Connection with Improper Marketing Arrangements with 27 Mutual Fund Advisers

On September 26, 2006, the Securities and Exchange Commission (“SEC”) announced the institution of a settled enforcement action against BISYS Fund Services, Inc. (“BISYS”), a mutual fund administrator.  The SEC found that BISYS had aided and abetted over two dozen mutual fund advisers in defrauding fund investors by entering into undisclosed side agreements with the advisers.  These agreements enabled the advisers to improperly use investors’ mutual fund assets to pay for marketing expenses rather than paying for those expenses out of their own assets. 

In settling the SEC’s charges, BISYS has agreed to cease and desist from committing or causing any violations and any future of Sections 206(1) and 206(2) of the Adviser’s Act and Sections 12(b) and 34(b) of the Investment Company Act.  BISYS also agreed to pay a total of $21.4 million consisting of $9.7 million in ill-gotten gains, prejudgment interest $1.7 million, and a $10 million civil penalty.  These monies will be placed in a distribution fund to be administered by the SEC for the benefit of the harmed mutual funds.

BISYS consented to the issuance of the Order without admitting or denying the findings in the Order.  Additional information can be obtained by clicking the following link:

Administrative Proceeding; Release No. IA-2554

SEC Moves Forward on Study to Compare Roles of Investment Advisers and Broker Dealers

Recently, the Securities and Exchange Commission (“SEC”) issued a request for contract proposals to conduct the first stage of a major study comparing the different regualtory systems that apply to broker dealers and investment advisers affect investors.

The goal of the SEC with respect to this initiative is “to improve investor protection by updating current regulations to deal with the realities of today’s marketplace”.  The SEC plans to accomplish this by developing the best available information from resources both inside and outside the Commission.

The SEC has formally issued a “request for proposal” to seek out a contractor with a proven track record of producing high quality, unbiased, qualitative, and quantitative research and that is knowledgeable about the subject matter of the study.  The information to be studied would include marketing, sales, and other materials relating financial products.  The study would also include an analysis of accounts, programs, and services offered by broker dealers and investments advisers.

The full text of the request for proposal can be viewed on the Commission’s website at http://www.sec.gov/news/extra/2006/sechq1-06-r-0177.pdf. 

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