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Complex Securities

Upcoming Senate Hearing on Tax Treatment of Funds Investing Indirectly in Commodities

January 25, 2012

Tomorrow at 10 a.m., the Senate Permanent Subcommittee on Investigations will hold a hearing titled: "Taxation of Mutual Fund Commodity Investments."  The hearing notice states that the hearing will examine "the issuance of over 70 private letter rulings by the Internal Revenue Service allowing mutual… read more

CFTC May Adopt New Rules for Mutual Funds in the Coming Days

January 24, 2012

According to a Bloomberg article, the CFTC may vote in the next few days to require mutual funds to abide by new marketing and registration rules when they use derivatives tied to commodities.  According to the article, multiple sources have said that the proposed… read more

Oppenheimer Proposes European Approach to Mitigating Derivative Risk

December 20, 2011

In a comment letter responding to the SEC's concept release on derivatives, Oppenheimer proposed that funds use a comprehensive approach to derivative risk currently used by European UCITS.  This approach uses value at risk (VaR) models to measure a fund portfolio's total risk, rather… read more

SEC Staff Focuses on Derivatives Disclosure in Prospectuses

November 28, 2011

A recent Financial Times article reports that the SEC appears to have increased its focus on derivatives disclosure in fund prospectuses.  Last summer, SEC staff sent a letter to the industry urging funds to be more specific in their derivatives disclosure.  However, it hasn't… read more

Forum Submits Comment Letter on Derivatives

November 10, 2011

On November 7, 2011, the Mutual Fund Directors Forums submitted its comments on the SEC's concept release "Use of Derivatives by Investment Companies under the Investment Company Act of 1940."  A copy of the comment letter may be found here.   read more