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

Displaying 471-480 out of 709 results

JOBS Act Double-Take

(Nov 2012)

Senator Carl Levin (D-MI) and colleagues have written two letters (here and here)to the SEC "to express [Congress's] concerns with, and offer improvements to, the Commission's Proposed Rule to implement Section 201 of the Jumpstart Our Business Startups Act (the JOBS Act)." Basically, the Senators argue that the SEC has misinterpreted the JOBS Act as allowing for widespread solicitation for private placement investments, when apparently Congress had no such intent. From the second letter:

In...

ETFs in 529 Plans

(Nov 2012)

We've talked before about the possibility that ETFs will replace mutual funds in many 401(k) retirement plans and the implications that might have for retirees. While most 401(k) plans have not yet adopted ETFs in their investment lineups, ETFs are becoming more common in another type of long-term savings plan known as a 529 Plan.

529 Plans are typically run by states and are used to save for future education expenses such as college. There are several ways to take advantage of 529 Plans. One...

SEC Litigation Releases: Week in Review - November 2nd, 2012

(Nov 2012)

Commission Files Subpoena Enforcement Action Against Adam Bielski
November 1, 2012, (Litigation Release No. 22525)
On October 24, 2012, the SEC filed an application for "an order to enforce an investigative subpoena served on Adam Bielski." In August the SEC "issued a formal order of private investigation authorizing its staff to investigate...potential compliance and security deficiencies at a Massachusetts-based investment adviser...registered with the Commission." Specifically, the staff...

Leveraged Exposure to the Mortgage REIT Sector

(Oct 2012)

Michael Aneiro over at Barron's pointed out an interesting recent SEC 424(b)2 filing from ETRACS for their Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL). According to the prospectus, the ETNs will "provide a monthly compounded two times leveraged long exposure to the performance of the [Market Vectors Global Mortgage REITs Index], reduced by the Accrued Fees." This ETN is essentially a leveraged version of Market Vectors Mortgage REIT ETF (MORT) which tracks the same underlying index.

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The Effects of ETF Turnover

(Oct 2012)

Lately there has been a lot of turnover in exchange-traded funds (ETFs), as we noted back in August. InvestmentNews has a great summary of what has happened this year, with 86 funds having closed so far in 2012. They note the important consequences of an ETF closing for investors and advisers:

Even though they are more routine, ETF closings still can create ripple effects that reach financial advisers and their clients. "For an adviser, the worst thing that can happen is, you recommend an ETF...

SEC Litigation Releases: Week in Review - October 26th, 2012

(Oct 2012)

Former Silicon Valley Executive to Pay $1.75 Million to Settle Insider Trading Charges
October 26, 2012, (Litigation Release No. 22523)
The SEC charged Kris Chellam, former senior executive of Xilinx Inc., with illegally tipping "hedge fund manager Raj Rajaratnam with nonpublic information that allowed the Galleon hedge funds to make nearly $1 million in illicit profits." Chellam allegedly tipped Rajaratnam on December 5, 2006 that Xilinx Inc. "would fall short of revenue projections it had...

SEC Under Pressure Regarding JOBS Act Provisions

(Oct 2012)

According to InvestmentNews, the SEC is being asked to abandon their new rules allowing hedge funds and other private placements to actively advertise to investors. We've discussed these issues before, as we think this could mark a significant change in how the public views this highly opaque and unregulated market. From the article:

Critics assert that the SEC proposed rule on private-fund advertising was too vague and would hurt investors by allowing them to be lured in by slick sales...

Do ETF Flows Move the Market?

(Oct 2012)

As exchange-traded fund (ETF) flows have grown over the past few years, the question of whether those fund flows influence the prices of ETF holdings has become a perennial issue. Matt Jarzemsky and Chris Dieterich of the Wall Street Journal recently posted what is perhaps the highest profile discussion of this issue to date, in which they provide interesting evidence that the ETF 'tail' might be wagging the market 'dog.'

They note that in early October, mid-cap indexes saw...

FINRA Fines and Suspends David Lerner for Apple REIT Ten Misrepresentations

(Oct 2012)

Today, FINRA fined David Lerner Associates $14 million, including $12 million in restitution to investors, for charging excessive markups and misleading investors in a non-traded real estate investment trust (REIT) known as Apple REIT Ten. They also suspended David Lerner himself for one year from the securities industry and for two more years from acting as principal for a securities firm. From the news release:

As the sole distributor of the Apple REITs, DLA solicited thousands of...

SEC Litigation Releases: Week in Review - October 19th, 2012

(Oct 2012)

SEC Charges Three Individuals for Their Roles in a $5.77 Million Investment Scheme
October 18, 2012, (Litigation Release No. 22514)
According to the complaint (opens to PDF), from February 2010 to February 2011 Geoffrey H. Lunn, Darlene A. Bishop, and Vincent G. Curry raised $5.77 million in an "investment scheme [through] Dresdner Financial, a fictitious financial services company." Lunn allegedly attracted investors by posing as the vice-president of Dresdner and telling investors that...

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