Editor column

Citation

Davis, H.A. and Tricarico Jr, J.A. (2006), "Editor column", Journal of Investment Compliance, Vol. 7 No. 2. https://doi.org/10.1108/joic.2006.31307baa.001

Editor column

We start this issue with Thomas Smith’s extraordinary analysis of mutual fund reform initiatives in response to scandals such as trading abuses and questionable sales practices and related issues such as revenue sharing, directed brokerage, soft dollars, market timing, late trading, and selective disclosure. This is the second in a two-part series following Mr Smith’s article in our previous issue, Volume 7 No. 1, in which he provides a chronology of developments since the beginning of 2003 concerning mutual fund scandals such as trading abuses and questionable sales practices and related issues such as revenue sharing, directed brokerage, soft dollars, market timing, late trading, and selective disclosure. Mr Smith’s two-part series provides a clearly explained, essential reference that addresses many of the most important investment company compliance issues of our time. Then in the first of four articles on hedge funds, Thomas Harman and Monica Parry outline the factors a hedge fund should consider in deciding whether to stay registered with the SEC or to deregister in light of the June 2006 District of Columbia Court of Appeals decision in Goldstein v. Securities and Exchange Commission. In the next article, Mr Harman and Ms Parry discuss the guidelines that investment advisers must follow in their personal trading to make sure they put their clients’ interests above their own; the authors also recommend the content of an adviser code of ethics. Ian Levin and Kevin Scanlan discuss the frequent use of side letters by private investment funds and also the dangers, including possible ERISA consequences. Wrapping up our section on hedge funds, Ethan Johnson provides a brief overview of the US securities laws that frame a hedge fund’s marketing process.

Henry A. DavisEditorJames A. Tricarico JrConsulting Editor