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

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

Rating:SEC: No Legal Roadblocks To Unbundling Not Rated 2.3 Email Routing List Email & Route  Print Print
Tuesday, May 2, 2006

SEC: No Legal Roadblocks To Unbundling

by: Armie Margaret Lee

The Securities and Exchange Commission does not see legal roadblocks for mutual fund firms and brokerages looking to enter into unbundling arrangements, according to a Dow Jones Newswires report.

Robert Plaze, associate director of the commission's investment management division, said that legal issues surrounding such arrangements, which involve the splitting of stock trading and research costs, can be addressed.

"I've suggested a form of analysis that would allow these types of unbundlings to go through without any problem," Plaze was quoted as saying. "I don't think there are legal impediments to unbundling."

The SEC has been receiving an increasing number of queries from lawyers of mutual funds and brokerage firms mulling unbundling arrangements. Brokerages have asked whether charging separately for research constitutes a breach of the Investment Advisers Act of 1940.

In October 2005, Fidelity Investments struck an agreement with Lehman Brothers under which the mutual fund giant will purchase stock research using its own cash. The Boston Behemoth reached a similar deal with Deustche Bank Securities two months later. Lehman, for its part, is reportedly in talks with other fund firms about separating its stock trading and research costs. 

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

2.3
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
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:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use