SEC Names Eileen Rominger as Director of Division of Investment Management
On Jan.18, 2011, the Securities and Exchange Commission announced that Eileen Rominger has been named its Director of Investment Management. She will begin her work at the agency in February.
The Division of Investment Management protects investors and promotes capital formation through oversight and regulation of the nation's multi-trillion dollar investment management industry. Ms. Rominger comes to the SEC from the asset management industry, where she worked for the past 11 years at Goldman Sachs Asset Management and most recently served as the firm's global chief investment officer. She previously worked for 18 years at Oppenheimer Capital, where she was a portfolio manager, managing director, and a member of the Executive Committee.
Ms. Rominger is replacing Andrew J. "Buddy" Donohue, who left the agency in November.
"Eileen brings the agency a lifetime of experience in the asset management industry and a record of strong leadership," said SEC Chairman Mary L. Schapiro. "She understands the importance of the nation's investment management industry to the well-being of investors everywhere."
Ms. Rominger's experience spans nearly 30 years as a portfolio manager serving investors and accountable to mutual fund boards of directors, and as a leader of portfolio management teams.
"The investor protection mission of the SEC has never been more important," said Ms. Rominger. "Retirement and other important financial needs loom large for millions of Americans, even as investment choices increase in number and complexity. I'm honored to have the opportunity to lead the Investment Management Division and its talented staff as they drive their critical agenda of transparency and integrity in the industry."
Working within Goldman Sachs's asset management unit, Ms. Rominger served as chief investment officer overseeing portfolio management teams in eight countries including fixed income, fundamental equity, and quantitative investment strategies. She also was a portfolio manager for fundamental equity portfolios. Ms. Rominger served as head of the investment committee for the Goldman Sachs Foundation, and was a member of the management committee and risk committee of the firm's Investment Management Division.
At Oppenheimer Capital, Ms. Rominger managed equity portfolios and was a member of the firm's management team.
Ms. Rominger, 56, received a BA in English from Fairfield University and an MBA in Finance from the Wharton School of Business at the University of Pennsylvania. (Press Rel. 2011-14)
Following is a schedule of Commission meetings, which will be conducted under provisions of the Government in the Sunshine Act. Meetings will be scheduled according to the requirements of agenda items under consideration.
Open meetings will be held in the Auditorium, Room L-002 at the Commission's headquarters building, 100 F Street, N.E., Washington, D.C. Visitors are welcome at all open meetings, insofar as space is available. Persons wishing to photograph or videotape Commission meetings must obtain permission in advance from the Secretary of the Commission. Persons wishing to tape record a Commission meeting should notify the Secretary's office 48 hours in advance of the meeting.
Any member of the public who requires auxiliary aids such as a sign language interpreter or material on tape to attend a public meeting should contact SECInterpreter@SEC.gov at least three business days in advance. For any other reasonable accommodation related disability contact DisabilityProgramOfficer or call 202-551-4158.
Open Meeting - Tuesday, January 25, 2011 - 10:00 a.m.
The subject matter of the Open Meeting will be:
At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.
RULES AND RELATED MATTERS
SEC Adopts Process for Disapproving Proposed Rule Changes
On Jan. 14, 2011, the Securities and Exchange Commission adopted the process it will use when it decides to hold hearings to consider whether it is in the public interest to disapprove rules proposed by self regulatory organizations and the Public Company Accounting Oversight Board.
Under existing securities laws, SROs - such as the national securities exchanges, FINRA and registered clearing agencies - must file with the SEC before they can make any changes to their own rules.
Under Section 916 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress required the SEC to specifically outline the manner in which the Commission will conduct proceedings to decide whether to disapprove an SRO's proposed rule change.
The rule lays out the process by which the Commission would provide notice to the proposing entity and the public of the Commission's institution of proceedings to determine whether to disapprove an SRO rule change. The rule also summarizes the process that the proceedings would follow and explains circumstances in which the Commission may disapprove the proposed rule change. (Rel. 34-63723)
In the Matter of Michael R. Pelosi
On Jan. 14, 2011, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(f) and 203(k) of the Investment Advisers Act of 1940 and Section 9(b) of the Investment Company Act of 1940 (Order) against Michael R. Pelosi, a former portfolio manager at Halsey Associates, Inc., a registered investment adviser headquartered in New Haven, Connecticut.
The Division of Enforcement alleges that Pelosi violated Sections 206(1) and 206(2) of the Advisers Act by repeatedly misrepresenting performance results to his investment-advisory clients during the period from 2005 through August 2008. More specifically, the Division alleges that Pelosi repeatedly exaggerated account gains and minimized losses, misrepresented performance results across various asset classes, and inflated total account performance results for quarterly and twelve-month periods. (Rel. IA-3141; IC-29569; File No. 3-14194)
In the Matter of Scott E. DeSano
An Administrative Law Judge has issued an Initial Decision in Scott E. DeSano, Administrative Proceeding No. 3-12978. The Initial Decision finds that Robert L. Burns (Burns) willfully violated Section 17(e)(1) of the Investment Company Act of 1940 (Investment Company Act). The Initial Decision censures Burns, orders him to cease and desist from committing or causing any violations or future violations of Section 17(e)(1) of the Investment Company Act, and to pay disgorgement in the amount of $135,281.45, plus prejudgment interest, and a civil money penalty in the amount of $40,000.
The Securities and Exchange Commission has previously accepted Offers of Settlement from eight of the remaining Respondents. Scott E. DeSano, Advisers Act Release Nos. 2812-19 (Dec. 11, 2008). Respondent Thomas H. Bruderman has submitted an Offer of Settlement that is pending approval before the Commission. (Initial Decision No. 412; File No. 3-12978)
In the Matter of Jennifer L. Dodge
On Jan. 19, 2011, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (Order) against Jennifer L. Dodge.
The Order finds that on Dec. 1, 2010, an agreed permanent injunction was entered against Dodge, permanently enjoining her from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act), and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, in the civil action styled Securities and Exchange Commission v. Jennifer L. Dodge, et al, Civ. Action No. 1:10-cv-913 (United States District Court for the Western District of Texas, Austin Division).
Based on the above, the Order bars Dodge from association with any broker or dealer. Dodge consented to the issuance of the Order without admitting or denying any of the findings in the Order, except as to the entry of the permanent injunction against her which she admits. (Rel. 34-63730; File No. 3-14196)
Daniel Spitzer Sanctioned
Daniel Spitzer (Spitzer), of North Barrington, Illinois, has been barred from association with any investment adviser. The sanction was ordered in an administrative proceeding before an administrative law judge, following a court-ordered injunction against him. In December 2010, Spitzer was enjoined from violating the antifraud provisions of the federal securities laws based on his involvement in a fraudulent "Ponzi" scheme in which he raised $105,875,029 from approximately 400 investors from 2004 to June 2010. Spitzer, individually and through sales agents and entities he controlled, represented to these investors that their money would be invested in investment funds that would be invested primarily in foreign currency trading and had profitable historical returns. In reality, Spitzer used $71,886,926 of the investor proceeds to make Ponzi payments to other investors to keep his scheme afloat. As part of his scheme, Spitzer regularly collectively transferred and commingled investor funds in an elaborate web of domestic and offshore entity accounts and issued false account statements to the investors. (Rel. IA-3142; File No. 3-14165)
In the Matter of Eric S. Butler
An Administrative Law Judge has issued an Initial Decision in Eric S. Butler, Administrative Proceeding No. 3-13986. The Initial Decision finds that Respondent Eric S. Butler was convicted on one count of conspiracy to commit securities fraud, one count of securities fraud, and one count of conspiracy to commit wire fraud by the U.S. District Court for the Eastern District of New York on Aug. 17, 2009, and that he was sentenced to prison, probation, and ordered to pay a fine and forfeit the gross proceeds of his crime. The Initial Decision concludes that, pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, it is in the public interest to bar Butler from association with a broker or dealer and that, pursuant to Section 203(f) of the Investment Advisers Act of 1940, it is in the public interest to bar Butler from association with an investment adviser. (Initial Decision No. 413; File No. 3-13986)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by the NASDAQ Stock Market to delay the application of NASDAQ Rule 4611(d) (SR-NASDAQ-2011-008) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of January 17. (Rel. 34-63716)
A proposed rule change filed by NASDAQ OMX PHLX relating to rebates and fees for adding and removing liquidity in Select Symbols (SR-Phlx-2011-005) has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of January 17. (Rel. 34-63718)
Accelerated Approval of Proposed Rule Change
The Commission issued notice of filing of Amendment No. 1, and granted accelerated approval to a proposed rule change, as modified by Amendment No.1, submitted by the NASDAQ OMX PHLX (SR- Phlx-2010-145) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, to establish remote specialists. Publication is expected in the Federal Register during the week of January 17. (Rel. 34-63717)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS