House Ways and Means Select Revenue Measures Subcommittee Chairman Richard Neal, D-Mass., has introduced legislation that would require greater disclosure of fees in 401(k) and other employer-sponsored retirement accounts by companies and plan administrators, coupled with tax penalties for failure to comply...Failure to provide such notices would result in a tax of $100 per day, capped at the lesser of $500,000 or 10 percent of a plan's assets.
There's nothing wrong with disclosure or transparency, but didn't the Department of Labor settle this last year? Talk about grandstanding by Congress.
From the category, "some things need to be talked about before getting married," this from Fidelity Investments:
60 percent of couples don't agree on their respective retirement ages, 44 percent are not in agreement on whether they will work in retirement, and 42 percent have different ideas regarding their expected lifestyle in retirement.
Only 15 percent of couples feel confident that both of them could assume responsibility for their joint finances if necessary.
You can read the full report here.
You can read the full report here.
For the past several years, "shareholder terrorist" groups have been hijacking, or seeking to hijack, shareholder meetings, corporate boards, and even CEOs. There's an interesting article today in Investment News which lays out their game plan:
Among those reforms: disclosure of broker compensation; repeal of Section 22(d) of the Investment Company Act, which allows funds to set fixed sales charges; 12(b)-1 fee reform; and improved disclosure of revenue-sharing payments. The groups also pushed for a suitability obligation to ensure that brokers recommend the best mutual fund share class and for redefining anyone who offers personalized advisory services as investment advisers.
These shareholder terrorist groups won't stop until the investor class is controlled and dominated by Big Labor and trial lawyers.
The hits on private markets keep coming. This from today's Congress Daily AM:
It is almost a given that hedge funds, private investment vehicles for the wealthy that engage in risky strategies such as short-selling and derivatives, will be further regulated. Lawmakers at a minimum are likely to require hedge funds to register with the SEC after a federal appeals court threw out such a mandate.
Lawmakers are concerned that the funds operate with little oversight and transparency. The industry does have some scars: In 2007 Amaranth Advisors LLC collapsed after losing $6 billion quickly in the natural gas trading market, and Bear Stearns' troubles began after two of its hedge funds invested heavily in the subprime mortgage market.
But some lawmakers are pushing for tougher regulations. Sens. Carl Levin, D-Mich., and Charles Grassley, R-Iowa, have sponsored legislation that would require naming the beneficial owner of the hedge fund, explain its ownership structure, spell out the names of any financial institutions with which the hedge fund is affiliated and disclose the minimum investment commitment required from an investor, as well as the total number of investors in the fund.
The measure is likely to be opposed by the industry, led by the Managed Funds Association, where former Rep. Richard Baker, R-La., serves as its president. But Grassley and Levin are influential legislators who enjoy taking on populist causes against Wall Street. In addition, lawmakers will have to decide whether to include industries beyond hedge funds for any registration requirement, such as private equity and venture capital firms. Those groups oppose being lumped in with hedge fund regulations.
This post originally appeared on ATR's Center for Fiscal Accountability
According to the Wall Street Journal
Connecticut is poised to become one of the first states to impose transparency rules on the hedge-fund industry, after giving up on waiting for the federal government to do so.
The state's Senate this week passed the measure, which would require fund managers and other investment advisers that haven't voluntarily registered with the Securities and Exchange Commission to alert investors to any material conflicts of interest. Firms that are SEC-registered already are required to abide by such guidelines.
Let's leave the fact that shareholders - and not the government - should be the ones demanding disclosure from hedge-fund managers aside for a minute.
What's interesting is that Connecticut, a state that has for the past three years failed to join more than twenty other states that have passed legislation providing greater transparency in government finances is now calling for more transparency in the private sector.
I guess that's what you would file under "the pot calling the kettle black."
I will be on Glenn Beck's show on Fox News at 5:30PM Eastern to discuss health care reform.
Finally, Wall Street seems to be getting it:
Prudential Financial Inc. today said that it won’t participate in the Department of the Treasury’s Capital Purchase Program.
Last month, the Treasury Department opened TARP to a handful of life carriers, including Allstate Corp. of Northbrook, Ill., Ameriprise Financial Inc. of Minneapolis, Hartford (Conn.) Financial Services Group Inc., Lincoln National Corp. of Radnor, Pa., and Principal Financial Group Inc. of Des Moines, Iowa.
Allstate and Ameriprise declined the TARP funds within days of being offered the money.