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Our experts frequently write blog posts about the findings of the research we are conducting.

Displaying 11-20 out of 145 results for "Mutual Fund".

SEC Litigation Releases: Week in Review - December 13th, 2013

(Dec 2013)

SEC Awarded $400,000 in Disgorgement from Certified Public Accountant for His Violations of Commission Suspension Order
December 12, 2013, (Litigation Release No. 22887)
A court ruling was entered this week that requires Michael H. Taber to pay the government $400,000 "in compensation he received while suspended from appearing or practicing before the Commission as an accountant."

SEC Halts Texas-Based Oil and Gas Investment Scheme
December 6, 2013, (Litigation Release No. 22886)
According to the...

SEC Scrutinizing Exchange Traded Notes

(Dec 2013)

Risk.net is reporting that the Office of Capital Markets Trends of the Securities and Exchange Commission (SEC) is looking into the details of exchange traded notes (ETNs). The office, headed by Amy Starr, is looking into the fees and the disclosure of risks and formulas used to determine ETN indicative values according to statements made by Starr at the Structured Products conference in Washington, DC on December 10.

ETNs have been a frequent subject on the blog and regulators have issued...

Non-Transparent ETFs and Foreign Stock Funds

(Dec 2013)

Typically, it's better to know more about an investment rather than less. When it comes to mutual funds and exchange-traded funds (ETFs), transparency means knowing what the fund is buying and selling, and therefore the underlying investment strategy.

Some commentators have claimed that fund transparency is a bad thing for investors. If a fund has a predictable investment strategy, then traders can front-run its trades, which may be large enough to move prices. The criticism is even louder...

FINRA Action Against JP Turner for Unsuitable Leveraged ETF Sales

(Dec 2013)

Last Thursday, FINRA ordered JP Turner, an Atlanta-based broker-dealer, to pay restitution related to sales of leveraged and inverse exchange-traded funds (ETFs) and excessive mutual fund switching. The total restitution to 84 customers totaled over $700,000.

Leveraged and inverse ETFs are extremely complex investments, that are designed for professional traders and are generally considered unsuitable for buy-and-hold investors. One fundamental issue with leveraged and inverse ETFs is that...

SEC Litigation Releases: Week in Review - December 6th, 2013

(Dec 2013)

SEC Obtains Final Judgment Against Massachusetts-Based Broker and Investment Adviser
December 5, 2013, (Litigation Release No. 22885)
Final judgments were entered against Arnett L. Waters and two entities he controlled, "broker-dealer A.L. Waters Capital, LLC and investment adviser Moneta Management, LLC," for their alleged involvement in the "fraudulent sales of fictitious investment-related partnerships." The final judgment enjoins the defendants from future violations of the securities laws...

Brokers Steal from Elderly Widow

(Dec 2013)

In our day-to-day work, we often come across brokers willing to ruin the lives of the undereducated or underprepared in order to make a quick buck. We thought we'd highlight a particularly egregious example of this from a recent Financial Industry Regulatory Authority (FINRA) press release.

According to the release, Fernando L. Arevalo and Jimmy E. Caballero encouraged an "elderly widow with diminished mental capacity" to sell two annuities for approximately $300,000 and then moved the funds...

Research Roundup

(Dec 2013)

For the more academically-inclined reader, here is a brief rundown of recent academic papers we have found interesting. As these are written by others, we do not necessarily agree with or stand by all of their points, so caveat emptor.

Trading Volatility: At What Cost?: The inventor of the original VIX, Robert Whaley, weighs in on volatility exchange-traded products, which he says are "virtually guaranteed to lose money through time." See also our papers on the subject.

Lapse-Based Insurance:...

SEC Litigation Releases: Week in Review - December 2nd, 2013

(Dec 2013)

SEC Charges Weatherford International with FCPA Violations
November 26, 2013, (Litigation Release No. 22880)
According to the complaint, oilfield services company Weatherford International violated the Foreign Corrupt Practices Act by "authorizing bribes and improper travel and entertainment for foreign officials in the Middle East and Africa to win business, including kickbacks in Iraq to obtain United Nations Oil-for-Food contracts." The company allegedly earned more than "$59.3 million in...

BDCs as the New REITs

(Nov 2013)

Brendan Conway at Barrons had an interesting piece back in September about business development companies (BDCs) and their similarities to real estate investment trusts (REITs). His story highlighted that BDCs in some sense resemble REITs in the 1990s, in that they are considered "previously exotic areas that went mainstream." Indeed, we are seeing more and more coverage of BDCs in the mainstream media, along with the troubling development of non-traded BDCs, just as we have seen non-traded...

SEC Litigation Releases: Week in Review - November 22nd, 2013

(Nov 2013)

Court Enters Final Judgment by Consent Against SEC Defendant Corey Ribotsky
November 21, 2013, (Litigation Release No. 22873)
A final judgment was entered against Corey Ribotsky who, along with The NIR Group, LLC, allegedly made "false statements to investors regarding the poor performance and trading strategy of the various AJW Funds he managed" during the financial crisis. Ribotsky also allegedly "misappropriated client assets and misled investors about the decision to form the AJW Master...

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