It may be time to book that ticket to Washington, D.C., pick up that phone, or send that email. The SEC
says that not a single mutual fund firm has voluntarily come to them to discuss their potential or current problems, reports Deborah Salomon of the Wall Street Journal
in a Friday article
The agency maintains that it has broadcast a message loud and clear to the financial services community -- those that come clean voluntarily will be treated more leniently.
, the SEC's enforcement director, said in a speech last fall that if the SEC uncovers problems without the aid of a firm, "I assure you that the consequences will be worse," reported Salomon.
Brokerage firms heeded that message -- many self-reported problems to the agency after that speech, reported Salomon.
Is the fund industry too busy (privately) dealing with its current problems? One SEC director thinks so: "[f]ixing yesterday's problems is good, but if you haven't thought about catching tomorrow's problem you're just going to go from blowup to blowup," the Journal
reported Linda Thomsen
, deputy director of enforcement, as saying.
"We want them to be thinking: Do they have conflicts with clients that are affecting their decisions," she added.
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