Code of ethics is more than just a set of rules for traders
While the investigation of Fidelity traders for accepting inappropriate gifts from brokers may be a one-off affair, it underscores the need for an effective ethics program, mutual fund experts say.

CCOs will be under scrutiny on soft dollars
Examiners are likely to put you on the spot regarding soft dollars, fund experts say, even as increased regulatory scrutiny dampens their use.

Exam watch: Do you have the resources you need?
The SEC wants to know
Are you afforded the authority required to perform your role? Does your budget allow you to implement an effective compliance program? SEC examiners are actively seeking answers to these and other pointed questions during inspections.

No extra money or examiners, but aggressive
exam program continues
Risk-targeted sweeps, close monitoring of the 100 largest investment advisory groups and a new surveillance program – this is what you can expect from the Office of Compliance Inspections and Examinations program going forward, according to the SEC's recently released 2006 budget.

Exam watch:
SEC goes fishing for formal class action suit participation policies
suit participation
Whether it's simply “fact finding” or the more ominous sounding “mini-sweep,” one thing is for certain: the SEC wants to know what processes you have in place to monitor corporate class action lawsuits and to determine whether your investors are eligible for participation.

Service provider oversight:
Good relationships begin with on-site meetings and market-timing reviews
You're expected to “maintain an active working relationship” with your service providers to ensure the appropriate compliance controls are in place and effective. But just how close do you need to get to establish an “active” relationship?

Hired guns work with troubled funds
Out of the settlement agreements the SEC reached with many mutual funds, a new cottage industry is being spawned. The role of independent consultant, which is now more commonplace in settlement agreements, is also wielding an unusual amount of clout.

Compliance pros offer rare guidance to funds
Questions every CCO should ask—and answer
Take one of your critical policies and procedures and ask yourself whether you can answer the following tough questions.

What to look for in an independent chair
Seniority isn't everything and term limits may not add value.
That's according to the Independent Directors Council, which was created last summer by the Investment Company Institute to address issues of fund governance.  The group  just released a report to give guidance for boards as they strive to meet the independent chair requirement.  Here's a look at their findings.

SEC arguments rest on ‘fictions,' says Chamber
The U.S. Chamber of Commerce was quick with its retort against the SEC in its lawsuit against the Commission over fund company governance. In a brief filed Jan. 26, the Chamber charges the SEC's position rests on two “fictions” – that the provisions under challenge do not regulate “mutual fund governance” and that a significant number of funds do not rely on the exemptive rules.

Best practices for shelf-space compliance
Wondering how to stay on the right side of the regulators with regard to shelf-space arrangements? The $20 million settlement between the SEC and Franklin Templeton in December offers some clues.

Fund leaders address the hottest issues for 2005:
12b-1 fees, revenue sharing, hard 4 close, and more
Confused about where things stand? Hear from fund experts about what you need to be ready for.

Alliance Capital paves the way for contract approval practices
6 criteria to consider in your next evaluation
With March 31 as the effective compliance date for new disclosure requirements regarding advisory contract approvals, that process is one of the first challenges facing chief compliance officers under the new rules.

CCOs need to draw the line
‘We hook 'em, you cook 'em
In this age of heightened regulatory supervision, compliance officers need to draw the line much more clearly than in the past on exactly what their role in the compliance process is. This means you have to have clear policies on escalation.

Special Report: Best practices in e-mail retention
After a relatively quiet enforcement period, the SEC came out swinging and cracked down on violations in a couple of major settlements last week. One of those slapped with fines was Deutsche Bank Securities for charges of conflict of interest.