Edward L. Pittman, Christopher P. Harvey, Michael L. Sherman and Brenden P. Carroll
The purpose of this paper is to explain the SEC staff's web site responses to a series of frequently asked questions concerning SEC Advisers Act Rule 206(4)‐5.
Abstract
Purpose
The purpose of this paper is to explain the SEC staff's web site responses to a series of frequently asked questions concerning SEC Advisers Act Rule 206(4)‐5.
Design/methodology/approach
The paper explains the SEC staff responses to FAQs on the ability to rely on prior Municipal Securities Rulemaking Board interpretations regarding MSRB Rules G‐37 and G‐38, determining who is an “official of a government entity,” determining who is a “covered associate,” payments of commissions or other compensation to brokers or others, the Rules' application to political action committees (PACs), and “effective dates” and “compliance dates” under the related recordkeeping rule.
Findings
Pay‐to‐play is the practice of making campaign contributions and related payments to elected officials in order to influence the awarding of lucrative contracts for the management of public pension plan assets and similar government investment accounts. The staff's answers to the FAQs announce cautious positions, do not address some of the more difficult issues advisers may face on a day‐to‐day basis, and are subject to change.
Originality/value
The paper provides practical guidance from experienced financial services lawyers.
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Stuart J. Kaswell, Alan Rosenblat and Michael L. Sherman
To describe and analyze in detail an Interpretive Release (the “2006 Interpretation”) approved on July 12, 2006 by the US Securities and Exchange Commission (“SEC”) regarding the…
Abstract
Purpose
To describe and analyze in detail an Interpretive Release (the “2006 Interpretation”) approved on July 12, 2006 by the US Securities and Exchange Commission (“SEC”) regarding the soft dollar safe harbor under Section 28(e) of the Securities Exchange Act of 1934.
Design/methodology/approach
Following a brief discussion of the history of soft dollars, describes and analyzes in greater detail relevant aspects of the 2006 Interpretation, including an explanation of the three‐part test concerning the use of soft dollars to pay for products and services under the safe harbor, a discussion of “mixed use” items, further detail on soft dollar arrangements, an explanation of liabilities and obligations of managers and broker dealers, and an implementation timeline.
Findings
Under the 2006 Interpretation, a money manager may rely on the safe harbor to acquire products or services only upon satisfaction of each part of a three‐part test. First, does the product or service meet the eligibility criteria of Section 28(e)(3)? Second, does the eligible product or service provide lawful and appropriate assistance in the performance of relevant responsibilities? Finally, may the money manager properly conclude, in good faith, that the commissions paid are reasonable in relation to the value of the research and brokerage products and services provided by the broker (in relation either to the particular transaction or to the money manager's overall responsibilities with respect to discretionary accounts)? The 2006 Interpretation also is relevant to broker‐dealers who may receive soft dollars. Under Section 28(e), a money manager can pay soft dollars only to broker‐dealers who “provide” research or brokerage services and “effect” transactions. Under the 2006 Interpretation, the circumstances under which broker‐dealers will be seen as “providing” services and “effecting” transactions will be interpreted more broadly than under past interpretations, allowing brokers and money managers greater flexibility to structure soft dollar and commission‐sharing arrangements in a manner that will better serve the interests of investors.
Originality/value
Provides a detailed analysis of the 2006 Interpretation concerning soft dollars.
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The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and…
Abstract
The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.
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Mr and Mrs Martin, the claimants, received financial advice from Mr Sherman, a representative of the Life Association of Scotland in 1991. The long‐term insurance business of the…
Abstract
Mr and Mrs Martin, the claimants, received financial advice from Mr Sherman, a representative of the Life Association of Scotland in 1991. The long‐term insurance business of the Life Association for Scotland was transferred to Britannia Life Ltd. in 1994, hence their position as Defendant to this claim. The financial advice the Martins received involved, in brief, a remortgage of their house, the surrender of a number of existing life policies which were collateral security for an existing mortgage on the house, the taking out of a new endowment policy and a pension policy with the new endowment policy being charged as collateral security on the mortgage. The judge described Mr Sherman as being, at the material time, a self‐employed financial consultant but he was actually for the purposes of the Financial Services Act 1986 a company representative of the Life Association for Scotland (LAS) authorised only to advise, market and sell that group's products. Mr Sherman was therefore a company representative of LAS within the meaning of rule 1.2 of the then applicable rules of the Life Assurance Unit Trust and Regulatory Organisation (LAUTRO).
Charitable Choice Policy, the heart of President Bush’s Faith‐Based Initiative, is the direct government funding of religious organizations for the purpose of carrying out…
Abstract
Charitable Choice Policy, the heart of President Bush’s Faith‐Based Initiative, is the direct government funding of religious organizations for the purpose of carrying out government programs. The Bush presidential administration has called for the application of Charitable Choice Policy to all kinds of social services. Advocates for child‐abuse victims contend that the Bush Charitable Choice Policy would further dismantle essential social services provided to abused children. Others have argued Charitable Choice Policy is unconstitutional because it crosses the boundary separating church and state. Rather than drastically altering the US social‐policy landscape, this paper demonstrates that the Bush Charitable Choice Policy already is in place for childabuse services across many of the fifty states. One reason this phenomenon is ignored is due to the reliance on the public‐private dichotomy for studying social policies and services. This paper contends that relying on the public‐private dichotomy leads researchers to overlook important configurations of actors and institutions that provide services to abused children. It offers an alternate framework to the public‐private dichotomy useful for the analysis of social policy in general and, in particular, Charitable Choice Policy affecting services to abused children. Employing a new methodological approach, fuzzy‐sets analysis, demonstrates the degree to which social services for abused children match ideal types. It suggests relationships between religious organizations and governments are essential to the provision of services to abused children in the United States. Given the direction in which the Bush Charitable Choice Policy will push social‐policy programs, scholars should ask whether abused children will be placed in circumstances that other social groups will not and why.
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Adam J. Vanhove, Tiffany Brutus and Kristin A. Sowden
In recent years, a wide range of psychosocial health interventions have been implemented among military service members and their families. However, there are questions over the…
Abstract
In recent years, a wide range of psychosocial health interventions have been implemented among military service members and their families. However, there are questions over the evaluative rigor of these interventions. We conducted a systematic review of this literature, rating each relevant study (k = 111) on five evaluative rigor scales (type of control group, approach to participant assignment, outcome quality, number of measurement time points, and follow-up distality). The most frequently coded values on three of the five scales (control group type, participant assignment, and follow-up distality) were those indicating the lowest level of operationally defined rigor. Logistic regression results indicate that the evaluative rigor of intervention studies has largely remained consistent over time, with exceptions indicating that rigor has decreased. Analyses among seven military sub-populations indicate that interventions conducted among soldiers completing basic training, soldiers returning from combat deployment, and combat veterans have had, on average, the greatest evaluative rigor. However, variability in mean scores across evaluative rigor scales within sub-populations highlights the unique methodological hurdles common to different military settings. Recommendations for better standardizing the intervention evaluation process are discussed.
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Kenneth J. Novak, Jennifer L. Hartman, Alexander M. Holsinger and Michael G. Turner
This paper adds to a growing body of research which explores the relationship between aggressive police strategies and serious crime. For one month, police enforced disorder crime…
Abstract
This paper adds to a growing body of research which explores the relationship between aggressive police strategies and serious crime. For one month, police enforced disorder crime in a small section of one community. An interrupted time series analysis was utilized to evaluate the effects of this intervention on robbery and aggravated burglary in a target area and a control area. The strategy was found to be unrelated to levels of aggravated burglary and robbery in the target area. There was no spatial displacement of crime. Explanations for the findings are offered.
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Judith M. Harackiewicz, Yoi Tibbetts, Elizabeth Canning and Janet S. Hyde
We review the interventions that promote motivation in academic contexts, with a focus on two primary questions: How can we motivate students to take more STEM courses? Once in…
Abstract
Purpose
We review the interventions that promote motivation in academic contexts, with a focus on two primary questions: How can we motivate students to take more STEM courses? Once in those STEM courses, how can we keep students motivated and promote their academic achievement?
Design/methodology/approach
We have approached these two motivational questions from several perspectives, examining the theoretical issues with basic laboratory research, conducting longitudinal questionnaire studies in classrooms, and developing interventions implemented in different STEM contexts. Our research is grounded in three theories that we believe are complementary: expectancy-value theory (Eccles & Wigfield, 2002), interest theory (Hidi & Renninger, 2006), and self-affirmation theory (Steele, 1988). As social psychologists, we have focused on motivational theory and used experimental methods, with an emphasis on values – students’ perceptions of the value of academic tasks and students’ personal values that shape their experiences in academic contexts.
Findings
We review the experimental field studies in high-school science and college psychology classes, in which utility-value interventions promoted interest and performance for high-school students in science classes and for undergraduate students in psychology courses. We also review a randomized intervention in which parents received information about the utility value of math and science for their teens in high school; this intervention led students to take nearly one semester more of science and mathematics, compared with the control group. Finally, we review an experimental study of values affirmation in a college biology course and found that the intervention improved performance and retention for first-generation college students, closing the social-class achievement gap by 50%. We conclude by discussing the mechanisms through which these interventions work.
Originality/value
These interventions are exciting for their broad applicability in improving students’ academic choices and performance, they are also exciting regarding their potential for contributions to basic science. The combination of laboratory experiments and field experiments is advancing our understanding of the motivational principles and almost certainly will continue to do so. At the same time, interventions may benefit from becoming increasingly targeted at specific motivational processes that are effective with particular groups or in particular contexts.
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Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and…
Abstract
Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and judicial decisions that contain 2,041 quantitative estimates of overcharges of hard-core cartels. The primary findings are: (1) the median average long-run overcharge for all types of cartels over all time periods is 23.0%; (2) the mean average is at least 49%; (3) overcharges reached their zenith in 1891–1945 and have trended downward ever since; (4) 6% of the cartel episodes are zero; (5) median overcharges of international-membership cartels are 38% higher than those of domestic cartels; (6) convicted cartels are on average 19% more effective at raising prices as unpunished cartels; (7) bid-rigging conduct displays 25% lower markups than price-fixing cartels; (8) contemporary cartels targeted by class actions have higher overcharges; and (9) when cartels operate at peak effectiveness, price changes are 60–80% higher than the whole episode. Historical penalty guidelines aimed at optimally deterring cartels are likely to be too low.
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Sucharita Belavadi and Michael A. Hogg
Uncertainty-identity theory serves as our guiding theoretical framework to explore subjective uncertainty, especially uncertainty about self and identity, and the ways in which…
Abstract
Uncertainty-identity theory serves as our guiding theoretical framework to explore subjective uncertainty, especially uncertainty about self and identity, and the ways in which communication within groups provides valuable social identity information to group members as a means to manage subjective uncertainty.
We review and synthesize research in communication science and social identity theory, specifically uncertainty-identity theory, to compare diverse understandings of uncertainty and the identity-shaping function of communication within groups.
Uncertainty inherent in dyadic interactions has received extensive attention in communication science. However, the identity-defining function of communication that flows within and between groups as a means to resolving uncertainty about subjectively important matters has received little attention in both social psychology and communication science.
We explore how communication that flows from in-group sources (e.g., leaders) serves to shape a shared reality and identity for group members while providing a framework for self-definition. We propose an agenda for future research that would benefit from an articulation of the importance of communication in the shaping and management of identity-uncertainty.
Uncertainty arousing rhetoric by influential in-group sources, such as leaders and the media can have serious implications for intergroup relations, as uncertain individuals seek distinctive and tight-knit groups and autocratic leaders under conditions of heightened uncertainty. The role that communication plays in shaping clear and distinct identities as a panacea for identity-uncertainty has implications for the intragroup normative structure of the group and for intergroup relations.