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Category Archives: Open-Ended Mutual Funds

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BDs Remember to File Marketing Material

Posted in Broker-Dealer Regulation, Closed-End Mutual Funds, FINRA Compliance, Investment Adviser Regulation, Investment Company Regulation, Open-Ended Mutual Funds

FINRA has published guidance on its new marketing Rule 2210.  See http://www.finra.org/Industry/Issues/Advertising/P197604   FINRA has indicated that retail communications that will now be subject to this filing requirement has to be filed by February 19, 2013.  FINRA suggested that retail communications relating closed-end funds and structured products must be filed.  FINRA wants, among other things, filed certain presentation… Continue Reading

What’s in a Name? Speculation, Hedging, They Are Not the Same Thing

Posted in Closed-End Mutual Funds, Hedge and Private Equity Funds, Investment Adviser Regulation, Open-Ended Mutual Funds, SEC Enforcement

Recently, in a settled SEC enforcement action, a mutual fund manager allegedly used an option strategy, but the SEC believed it was more speculative than hedging.  See http://www.sec.gov/litigation/admin/2012/33-9377.pdf. The SEC focused on the fact that the prospectus only permitted options for hedging, instead, the SEC claimed option trading was used to speculate.  The SEC cited… Continue Reading