Tue, Oct 25, 2016
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


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa