CCH Wall Street – Despite enormous fines, sanctions and top executives losing their jobs, the SEC continues to find evidence of market timing in the mutual fund industry.<\/p>\n
Just over three years ago, New York Attorney General Eliot Spitzer shocked the financial services industry when he announced several major mutual fund firms had allowed Canary Capital Partners, a hedge fund, to improperly market time within their funds.<\/p>\n
The widespread scandal was the major black eye the fund industry has had to endure. Since then, regulators have collected millions of dollars in fines and settlements, new compliance programs have been implemented. Some prominent fund administrators are no longer working and some firms are no longer in existence as a result of the scandal.<\/p>\n
But, despite all that, the SEC is still finding signs that mutual fund firms are allowing market timing, Mary Ann Gadziala, an associate director at the Office of Compliance, Inspections and Examinations at the SEC told the The National Society of Compliance Professionals Annual Meeting earlier this month.<\/p>\n