Monday, March 25, 2013

Fund Directors Feel the Heat



From WSJ: …Six former directors of Morgan Keegan Inc. mutual funds "abdicated" their responsibilities, says the Securities and Exchange Commission. A civil enforcement action filed in December against the directors and two former Morgan Keegan employees who were directors of the same funds is headed for an April 2 hearing by a judge.

People familiar with the case say both sides are in settlement talks, though terms of the potential deal aren't clear. The former directors deny any wrongdoing. Deal or no deal, legal experts say the case already is making waves across the mutual-fund industry. It is a "stark warning" that the SEC is revving up its scrutiny of mutual-fund directors and is likely to hold them more accountable than the agency has in the past,

More?  Check out http://online.wsj.com/article/SB10001424127887323466204578380502371722698.html

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