Thursday, 26 November 2015
Last updated 1 day ago
Dec 20 2013 | 11:37am ET
The Commodity Futures Trading Commission has launched a probe into fees charged by managed futures funds.
Outgoing commissioner Bart Chilton said the agency was moved to act after Bloomberg Markets reported last month that of $11.51 billion in profits generated by 63 managed futures funds, 89% was eaten up by expenses and fees.
"Of all a regulator's duties, first amongst those should be safeguarding consumers," Chilton said. "That includes highlighting, and possibly banning, excessive fees that can gobble up profits."
"The problem is I don't think investors understand this," Chilton told Bloomberg News. "We need to do something about that."
Managed futures fees are also getting scrutiny from Capitol Hill, where the U.S. Senate Special Committee on Aging has urged the SEC and CFTC to work together on creating new fee disclosure requirements for retirement accounts run by managed-futures funds.
For his part, Chilton, who was set to leave the CFTC by the end of the year, said he would stay at the regulator beyond Dec. 31, both to assist with the agency's transition—Chairman Gary Gensler will depart at the end of the year, and his successor, Treasury Department official Timothy Massad, has not yet been confirmed. He also said the managed-futures probe won't depend on his presence.
"The inquiry won't end when I leave," he said.
President Barack Obama yesterday nominated Sharon Bowen to succeed Chilton. Bowen is a securities lawyer at Latham & Watkins.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…