-
Monday, April 5, 2010
On February 23, 2010, the Securities and Exchange Commission ("SEC") adopted amendments to Rule 2a-7 ("Amended Rule 2a-7") under the Investment Company Act of 1940 ("ICA"), which governs money market funds.1The amendments were in response to the market turmoil that affected money market funds commencing in September 2008 after the Lehman Brothers Holdings...
-
Monday, June 1, 2009
On April 8, 2009, the U.S. Court of Appeals for the Eighth Circuit decided Gallus v. Ameriprise Financial, Inc. ,1the latest significant case involving Section 36(b) of the Investment Company Act of 1940 (the "1940 Act"). In Gallus , the Eighth Circuit reversed the District Court's grant of summary judgment for the investment adviser and remanded the...
-
Saturday, November 1, 2008
Recent events in the commercial paper market, beginning with Lehman Brothers Holdings, Inc.'s declaration of bankruptcy on September 15, 2008, have led some money market funds to "break the buck." These funds were unable to maintain a stable net asset value or share price (a "stable share price") of $1.00. As this was the first incidence of any significant...
-
Wednesday, September 1, 2004
As a result of recent scandals in the investment management industry, the Securities and Exchange Commission ("SEC") has been revisiting the regulatory structure that applies to investment companies and investment advisers. As part of that effort, the SEC recently adopted and amended final rules1 that require registered investment advisers to develop codes...
