Securities Activities of Banks in the GLB Era - Cleary Gottlieb Steen ...

(i) Recent areas of compliance interest 51 include:
(A) Fees (including performance, administrative
and soft-dollar fees and fund confirmation and
point of sale fee disclosure).
(B) Use of brokers (e.g., soft dollar payments, nonresearch
or mixed-use products, distribution,
client referrals, etc.).
(C) Suitability.
(D) Information controls to prevent insider trading
and front running.
(E) Anti-money laundering compliance. 52
(F) Fund shareholder trading (“market timing”,
“late trading”, etc.). 53
(G) Transactions with affiliates (including
favoritism, abusive/undisclosed transactions,
51 See, e.g., Remarks of SEC Office of Compliance Inspection and Examinations
Director Richards, December 23, 2005; Remarks of SEC Office of Compliance
Inspection and Examinations Associate Director Gohlke, December 6, 2005;
Remarks of SEC Division of Investment Management Director Roye, January 25,
2005. Compare Assessing the Adequacy and Effectiveness of a Fund’s Compliance
Policies and Procedures (Investment Company Institute, December 2005).
52 See generally Anti-money Laundering Guidance for Collective Investment Schemes
(IOSCO, October 2005).
53 See generally Oppenheimer & Co., NASD News Release, January 9, 2006 (charge of
knowingly submitting inaccurate and incomplete data in response to NASD request
for self-assessment of mutual fund breakpoint discount practices); Best Practices
Standards on Anti-market Timing and Associated Issues for CIS [Collective
Investment Schemes] (IOSCO, October 2005).
66