The MSRB published the organization’s 2015 Annual Report. The Report highlighted MSRB’s ongoing efforts on investor protection, improved disclosure and new regulatory standards for municipal advisors. The Annual Report also reviewed the organization’s finances for the fiscal year and outlined an agenda for 2016.
The MSRB stated that it will continue to improve on the progress made to date, and in 2016 will:
- enhance the availability of more robust pricing information for municipal securities investors;
- work toward better disclosures of bank loans and alternative financings by municipal securities issuers;
- create the first professional qualifying examination for municipal advisors; and
- add objective, noncommercial resources on municipal market topics to the online MSRB Education Center.
Future initiatives include (i) shortening the settlement cycle to T plus 2,(ii) minimizing technological vulnerabilities in its trade reporting system, (iii) improving issuer disclosure practices and (iv) implementing regulatory standards for municipal advisors.
The SEC Office of Investor Education and Advocacy offered ten tips for investors. The tips are intended to help them make informed investing decisions and avoid common scams in 2016.
The SEC’s bulletin listed the following ten investment tips:
- always check the background of an investment professional – doing so is easy and free;
- promises of high returns with little or no risk are classic warning signs of fraud;
- be careful when using social media as an investment tool;
- ignoring fees associated with buying, owning and selling an investment product can be costly;
- be alert to affinity fraud;
- any offer or sale of securities must be registered with the SEC or exempt from registration – otherwise, it is illegal;
- diversification can help reduce the overall risk of an investment portfolio;
- active trading and other common investing behaviors actually undermine performance;
- unbiased resources are available to help individuals make informed investing decisions; and
- contact the SEC Office of Investor Education and Advocacy online for answers to any questions about investments, investment accounts or financial professionals.
Steve Hanke, Johns Hopkins Professor of Applied Economics and a CFS Special Counselor, discusses the Federal Reserve’s announcement of the first interest rate increase in ten years.
Professor Hanke emphasizes the relative importance of the broad money supply, which includes that supplied by the private banking system, as measured by the CFS Divisia report of December 16, 2015. CFS Divisia M4 grew by 4.6% in November 2015 on a year-over-year basis versus 3.4% in October or 2.1% for 2014, a statistic Hanke cited as indicating a “healthy” but “modest” economic growth.
To listen to the podcast, click here: http://english.cri.cn/7146/2015/12/17/3921s908785.htm
An SEC proposal requiring the adoption of liquidity risk management programs by SEC-registered open-ended investment companies was published in the Federal Register.
Comments on the proposal must be submitted by October 29, 2015.
Reporter James Puzzanghera interviewed CFS President Lawrence Goodman for an article published in today’s Los Angeles Times.
In “Five things to watch for as the Federal Reserve makes its rate hike decision”, Mr. Puzzanghera discusses the potential outcomes of today’s decision by Central bank policymakers. At 11:00am Pacific Time (2:00pm Eastern Time), the Fed will announce if the time has come for an increase, nearly a decade after the last increase in the benchmark federal funds rate.
While some experts do not believe a rise in interest rates would be constructive, others argue removing the questions about when the Fed would raise the rate would do more for financial stability, particularly in the long-term, than holding steady. “It’s this deep uncertainty surrounding the conduct of monetary policy that is exacerbating swings in financial markets,” said Lawrence Goodman, a former Treasury official who is president of the Center for Financial Stability think tank.
To read the complete article please go to http://www.latimes.com/business/la-fi-federal-reserve-interest-rate-five-things-to-watch-20150917-story.html.
Author Reunka Rayasam interviewed CFS Advisory Board member Charles Goodhart, emeritus professor at the London School of Economics and formerly a member of the Bank of England’s monetary policy committee, for a recent article in Reuters.
In “First try at European money union didn’t work either” Ms. Rayasam, using history as a guide, questions if politics could be the stumbling block as Greece and it’s eruo zone lenders finalize details of its third bailout package. Professor Goodhart believes that “Currency and money are much more interconnected with political control than most people think.”
To read the complete article, please go to: http://blogs.reuters.com/great-debate/2015/08/11/first-try-at-european-money-union-didnt-work-either/.