Oct. 1–Mutual fund manager Alliance Capital suspended two employees after discovering conflicts of interest in trading activities.<\/p>\n
Alliance said a portfolio manager of the Alliance Bernstein Technology Fund and an exec involved in selling the firm’s hedge funds were both engaged in market timing.<\/p>\n
A spokesman for Alliance declined to name the suspended employees, but since 1992, the manager of the technology fund has been Gerald Malone.<\/p>\n
The Securities and Exchange Commission and Spitzer have been probing mutual fund firms to uncover the extent of late trading and market timing, trading techniques that some studies suggest have cost average investors billions.<\/p>\n
Alliance said it has been cooperating fully with the investigations. The firm said its board authorized a special committee to direct and oversee its own review.<\/p>\n
Meanwhile, SEC chairman Bill Donaldson pledged to monitor mutual fund trading closely.<\/p>\n
“We will aggressively pursue those who have injured investors as a result of illegal late-trading and\/or market-timing activity and, where possible to seek recompense for these investors,” Donaldson told the Senate banking committee yesterday.<\/p>\n
The probes of mutual funds gathered momentum several weeks ago, after Spitzer alleged some mutual fund companies helped a hedge fund called Canary Capital Partners design illegal trading schemes.<\/p>\n
Separately, the SEC said it sanctioned the Chicago Stock Exchange for failing to detect several violations by its members.<\/p>\n
“This case demonstrates that the commission is and will continue to be vigilant and aggressive in ensuring that self-regulatory organizations fulfill their regulatory obligations,” said Stephen Cutler, the SEC’s director of enforcement.<\/p>\n
—–<\/p>\n
To see more of the Daily News, or to subscribe to the newspaper, go to http:\/\/www.NYDailyNews.com<\/p>\n
(c) 2003, Daily News, New York. Distributed by Knight Ridder\/Tribune Business News.<\/p>\n
AC,<\/p>\n","protected":false},"excerpt":{"rendered":"
Oct. 1–Mutual fund manager Alliance Capital suspended two employees after discovering conflicts of interest in trading activities. Alliance said a portfolio manager of the Alliance Bernstein Technology Fund and an exec involved in selling the firm’s hedge funds were both […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1239","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=1239"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1239\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=1239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=1239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=1239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}