The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:SEC Creates Fair Funds Distributor Not Rated 3.0 Email Routing List Email & Route  Print Print
Thursday, May 17, 2007

SEC Creates Fair Funds Distributor

by: Neil Anderson, Managing Editor

It's been five years since Congress first authorized the SEC to send fines and restitution money back to those people scammed by securities fraud, and the agency appears to have decided that current progress is inadequate.

A small chunk of the Fair Funds includes restitution and fines to be returned to the victims of market timing and late-trading in mutual funds. However, the bulk of the funds come from fines for other types of securities fraud.

In testimony Wednesday before the Senate subcommittee on financial services and general government, SEC chairman Christopher Cox announced the creation of a new agency office to return financial fraud victims' money, specifically the Fair Funds. He also unveiled Phoenix, a new information system to support the new office.

According to Cox, returning all the money "will require a sustained effort within the commission to train professionals ... to develop consistent practices and to routinize the execution of the Fair Funds function." He even admits that the SEC has done a sub-par job so far.

"Too much money is still undisbursed," Cox told the subcommittee, "because of the complexities of the process, leaving investors uncompensated."

Cox also revealed that the SEC is working with the Bureau of the Public Debt to invest the money so as to earn interest while it is waiting to be distributed. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use