金融机构管理Chap005.ppt

Balance Sheet and Trends Money Market Funds (MMFs) Key assets are short-term securities (consistent with deposit-like nature) 2009: $2,722.6 billion (81% of total assets) 2008: flight to safety, out of corporate and foreign bonds Most have share values fixed at $1 and adjust number of shares owned by the investor Significant liquidity risk highlighted during crisis Balance Sheet and Trends Long-term funds Stocks comprised over 70.0 % of asset portfolios in 2007 versus 55.5% in 2008 Credit market instruments 27.2% of asset portfolios in 2007 versus 41.9 in 2008 Shift to other securities such as credit market instruments, U.S. Treasuries, municipal bonds etc. when equity markets not performing as well Regulation of Mutual Funds One of the most closely regulated among non-depository FIs Primary regulator: SEC Emphasis on full disclosure and anti-fraud measures to protect small investors NASD supervises mutual fund share distributions Regulatory Changes Prosecutions in light of trading abuses in early 2000s Market timing Late trading Directed brokerage Improper fee assessments Changes include SEC requirements for independent board members, reporting and disclosure requirements Further Regulatory Changes Increase in requirements for disclosure Enhanced transparency Requirement for firms to have a compliance officer Compliance Officer Reports directly to mutual fund directors, not executives of the fund Responsible for reporting any wrongdoings Policing personal trading of fund managers Ensuring accuracy or reporting to regulators Reviewing fund business practices Legislation Securities Act 1933, 1934 Investment Advisers Act, 1940 Insider Trading and Securities Fraud Enforcement Act of 1988 Market Reform Act of 1990 Allows SEC to halt trading and introduce circuit breakers Legislation (continued) National Securities Markets Improvement Act of 1996 Exempts mutual fund sellers from state securities regulatory oversight Sarbanes-Oxley Act of 2002 Global Issues Worldwide