Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:ICI's Blass Sees Diamonds, Not Shadow Bankers Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, March 16, 2015

ICI's Blass Sees Diamonds, Not Shadow Bankers

Reported by Neil Anderson, Managing Editor

The modern American mutual fund industry is a transparent, durable diamond, not a legion of shadow bankers.

That's the message this morning conveyed by Investment Company Institute (ICI) general counsel David Blass in his opening remarks at the 2015 Mutual Funds and Investment Management Conference at the J.W. Marriott Desert Springs resort in Palm Desert, California. In the prepared text of his speech titled "The Modern Fund Industry at 75," Blass reflects on the mutual fund industry's diamond (from the Greek word meaning "unbreakable") anniversary, celebrating the passage of the Investment Company Act of 1940 and the Investment Advisers Act of 1940 and the creation in 1940 of what is now the ICI. Blass also touches on three key issues that he sees shaping fundsters' world "for years, if not decades, to come."

"What an appropriate symbol for the modern fund industry," Blass says early on in his speech. "A diamond embodies immense strength, resilience, and durability -- much the same as regulated funds."

Blass, an SEC veteran who joined the ICI last year, praises SEC Chair Mary Jo White's regulatory efforts and comments. He contrasts White with banking regulators, who often call fundsters shadow bankers and who are fighting to try to impose banking-like, risk-minimizing regulations on the mutual fund industry.

"The real risk is that the capital markets themselves will come under bank-like regulation -- putting the SEC's mandate of investor protection, capital formation, and efficient functioning of the markets in conflict with bank regulators' desire to see risks eliminated, or at least dramatically reduced, in order to promote the safety and soundness of large banks and other designated financial companies," Blass warns. "And this risk is real."

Blass also offers words of caution about an SEC sweep called "Distribution in Guise," remarking that any so-called "hidden" distribution fees in mutual funds would have to be "hidden in plain sight." He urges the SEC to leave "discretion on oversight of payments to intermediaries in the capable hands of fund directors and trustees."

"Upholding this tradition is very important," Blass says. "To do otherwise, to dismiss directors' business judgment, would undermine their critical role. It would also override many years of sound legal interpretation in this area." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use