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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (12080)	9/4/2003 6:24:43 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

SEC Demands Mutual Funds Detail Trading Practices (Update1) Sept. 4 (Bloomberg) -- The U.S. Securities and Exchange Commission is demanding that mutual fund companies and securities firms explain their policies on trading practices that led to charges by New York Attorney General Eliot Spitzer. The agency plans to send letters today asking the fund companies and brokerages to detail their procedures for preventing after-hours trades, said Lori Richards, director of the SEC's office of compliance inspections and examinations. The letters also will ask the funds to explain their policies on allowing frequent trading or ``market timing,'' she said. ``If we don't get satisfactory comfort, our examiners are going to be everywhere in this country looking for this stuff,'' Richards said in an interview in Washington. ``If these exist elsewhere, we are going to come down on it with the full force of the law.'' Yesterday, Spitzer announced a $40 million settlement with hedge fund Canary Capital Partners LLC and its managing principal, Edward Stern. Spitzer accused Canary of using several mutual funds that allowed the hedge fund to trade shares after hours, which is illegal, and allowed Canary to make frequent trades, taking advantage of disparities in the price of a mutual fund and the value of its stocks. Richards said the SEC's letters will be sent to all major fund companies and securities firms, covering about 75 percent of all the assets under management in the U.S. The SEC will follow up the letters with on-site inspections, Richards said. Last Updated: September 4, 2003 16:42 EDT