Sat, Oct 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

U.S. SEC’s Investment Management chief A. Donohue to leave in November

Wednesday, August 18, 2010

Andrew J. Donohue
Opalesque Industry Update – The U.S. Securities and Exchange Commission (SEC) has confirmed that its top mutual fund regulator Andrew J. “Buddy” Donohue is leaving the agency after serving more than four years as Director of the Division of Investment Management.

In a statement, SEC Chairman Mary L. Schapiro recognized Donohue’s contributions to the commission’s efforts in reforming the financial system.

Schapiro said: "Buddy has been an effective leader and investor advocate during his tenure at the Commission. ... We are grateful for his practical insights and innovative guidance, and thank him for his tremendous commitment to public service."

Donohue said: "I will forever value my time at the Commission and its remarkable mission that I feel fortunate to have been a part of."

During his stint as head of the mutual fund division, Donohue was credited for helping develop key regulations governing the $39tln asset management industry, including investor-oriented rules to improve oversight of money market funds, increase investment adviser custody controls, and curtail investment adviser "pay-to-play" abuses.

Indeed, Donohue is credited for crafting a new rule that bans asset managers from making campaign contributions to elected officials with the aim of securing contracts to manage public pension funds, reported the Wall Street Journal.

Early this year, Donohue questioned whether investors were being given “appropriate protections” in some collective-trust agreements. Current law does not require collective trusts to register as mutual funds on the assumption that banks have full investment authority over the trusts’ investments.

The SEC official said in his speech to the Practicing Law Institute in New York that his division was studying whether SEC “regulatory recommendations” are necessary to correct the situation.

Prior to joining the SEC, the 59-year-old Donahue served as General Counsel for Merrill Lynch Investment Managers, where he oversaw the legal and regulatory compliance duties for more than $500bn in assets including mutual funds, fixed income funds, hedge funds, private equities, and managed futures. He was also Chairman of Merrill Lynch’s Global Risk Oversight Committee.

According to the Wall Street Journal, Donohue will leave the commission while in the thick of drafting the rules regarding the recent passage of the new financial law that requires hedge fund managers to register with the SEC and provide information on their leverage and positions.

Donohue has not revealed any plans after formally exiting the SEC this November.

- Precy Dumlao

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t