Investment


  The SEC adopted amendments to give regulatory relief to mutual funds in enforcing prohibitions against short-term trading. In October the SEC issued final amendments to a rule requiring funds to negotiate agreements with all broker-dealers or other intermediaries holding shares on behalf of other investors in an “omnibus account.” The agreements require the intermediaries, among other things, to enforce trading restrictions upon individual shareholders.

After the original rule was adopted in 2005 many fund managers told the SEC that identifying all such intermediaries among their shareholders was costly and burdensome. It also was unnecessary, they said, since short-term trading by individual shareholders would be reflected in that of the intermediary. In response the SEC has revised its definition of a financial intermediary to exclude any entity the fund treats as an individual investor. The changes take effect December 4.

SPONSORED REPORT

Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.