SEC urged to relax margin restrictions on MF shares
Sunday, 25 July 2010
FE Report
The asset management companies have urged the Securities and Exchange Commission (SEC) to urgently relax margin restrictions on mutual fund shares.
Members of the Association of Asset Management Companies (AAMC) in a meeting with chairman of SEC Ziaul Haq Khandaker Thursday last made the appeal, AAMC sources said.
Citing the current situation as excessively restrictive and discriminatory toward mutual fund investors, especially in light of the fact that these shares are less speculative buys than many marginable shares in other sectors, the AAMC urged the SEC to ease such restrictions and expand margin availability for mutual fund shares.
The AAMC discussed a number of pressing issues impacting the mutual fund industry and submitted a series of recommendations for urgent implementation for the greater developments of both the mutual fund industry and the growing stock market in general.
The AAMC also recommended for relaxation of limits placed on institutional and retail investors participating in mutual fund pre-IPOs and reduction of the lock-in period for mutual fund pre-IPO placements.
Members of AAMC also urged the SEC to launch in-depth studies on the industry and solicit input from asset management companies during the formative phase of any new regulations or changes.
Such constructive process and dialogue will not only help SEC consider in advance the real world impact of its proposed policies, but also ease the implementation of such policies.
The SEC chairman gave the assurance that the AAMC's concerns will be given due consideration.
Present from the AAMC, among others, were Mr. Wahiduzzaman Khandaker, CEO of ICB AMCL, Mr. Reaz Islam, CEO of LR Global Asset Management, Mr. Waqar Choudhury, CEO of Green Delta Financial Services Limited and Dr. Hasan Imam, CEO & MD of RACE Asset Management.
The asset management companies have urged the Securities and Exchange Commission (SEC) to urgently relax margin restrictions on mutual fund shares.
Members of the Association of Asset Management Companies (AAMC) in a meeting with chairman of SEC Ziaul Haq Khandaker Thursday last made the appeal, AAMC sources said.
Citing the current situation as excessively restrictive and discriminatory toward mutual fund investors, especially in light of the fact that these shares are less speculative buys than many marginable shares in other sectors, the AAMC urged the SEC to ease such restrictions and expand margin availability for mutual fund shares.
The AAMC discussed a number of pressing issues impacting the mutual fund industry and submitted a series of recommendations for urgent implementation for the greater developments of both the mutual fund industry and the growing stock market in general.
The AAMC also recommended for relaxation of limits placed on institutional and retail investors participating in mutual fund pre-IPOs and reduction of the lock-in period for mutual fund pre-IPO placements.
Members of AAMC also urged the SEC to launch in-depth studies on the industry and solicit input from asset management companies during the formative phase of any new regulations or changes.
Such constructive process and dialogue will not only help SEC consider in advance the real world impact of its proposed policies, but also ease the implementation of such policies.
The SEC chairman gave the assurance that the AAMC's concerns will be given due consideration.
Present from the AAMC, among others, were Mr. Wahiduzzaman Khandaker, CEO of ICB AMCL, Mr. Reaz Islam, CEO of LR Global Asset Management, Mr. Waqar Choudhury, CEO of Green Delta Financial Services Limited and Dr. Hasan Imam, CEO & MD of RACE Asset Management.