February 9, 2012
Mary Jane Sutliff
Anchorage, Alaska 99517
Re: Public Comment Regarding S7-38-11 and S41-11
I would like to see the deadline for comments extended. I would also like security advisors be required to inform their investors of the Security and Exchange Commission Requests for Comments in the quarterly or monthly statements or their newsletters. Those statements should also inform investors of the existence of the Securities and Exchange Commission as the enforcing agency for reporting incidence of investor fraud, deceit or lack of information.
ADDITIONAL INFORMATION FOR INVESTORS
Jamie Davis, of Silverado submitted a suggestion regarding due diligence reports . He stated they should be made available to the public. This idea has merit.
PROBLEMS WHEN SECURITIES ARE MOVED FROM ONE BROKERAGE FIRM TO ANOTHER - COST BASIS
Firstly, it is very noticeable that the information has improved. I am still concerned that when I have moved securities to a new firm the cost basis is not supplied by the new investment broker. I can see that cost basis is currently supplied but what of the securities I bought in the 1980's from a former firm? How can I access the cost basis of those securities? What if I sell them 10 years from today? This makes paying taxes on those securities more than difficult. If it is already not in place, investment firms should be required to report cost basis from previous investment firms when a transfer of accounts occurs.
NOTICE OF MEMBERSHIP IN A CLASS- FAIR REPORTING
From time to time I receive notices that some of the stocks in my portfolio are the subject of litigation. The notices do not list the purchase date and sale date of the purchases in question. Why not? When the brokerage firm receives a notice that my stocks in their mutual fund are subject to legal action entitling me to potential recovery of losses, those mutual fund managers should have an obligation to me to notify me of the stocks, the date of purchase and of sale, and as proof of ownership. This information is obviously available to them since they sent the notice based upon the information they have.
What happens to the funds owed me that I do not recover for lack of appropriate information? Do these funds I was entitled to go to the mutual fund? This is wrong. Mutual Fund managers take money to manage my account. That fiduciary obligation should not end when the mutual fund stocks are sold. ie. I bought a lot of Enron which was held in mutual funds. I was given no information on the cost basis or sale of these funds so that I could file a claim when I received the information. How much did that cost me?
CONFLICTS OF INTEREST DISCLOSURE
Any and all relationships between the Boards of one company and another should be disclosed in the annual report. In addition, the holdings of the members of the board and the Chief Executive Officer should be clearly posted on the webpage of each company. The movement of stock by Chief Executive Officers and the Board are an indication to investors of the value of the stock.
Kevin Ellis's comment has merit. I have no knowledge of the SEC ADV Part 2 is a document. I would like to be able to enter the name of an advisor and have the information on such conflicts and fees reported to me.
INTERMEDIARIES PREVIOUS VIOLATIONS
Jonathan Phelan's suggestion that previous violations of intermediaries be disclosed is a way for the intermediaries to self-regulate. The SEC should make this information available by name search on their webpage.
The availability of this information should be clearly stated on the statements sent to investors.
REPORTING RESULTS ANNUAL MEETING
Recently minority shareholder proposals have come with voting packages.
The results of the yearly elections are not reported. This is important information for shareholders. If my pension fund is investing in a company (Alaska ) or the permanent Fund (Alaska) is investing in a company I need to see if I should politic locally or personally with other shareholders to increase the vote on the minority shareholder proposal.
Thank you for asking what can be done to address fraud and conflicts of interest. Is the SEC also considering monetary fines for enforcement of the regulations?
Mary Jane Sutliff