Compliance January 12, 2011

EBSA Extends Comment Period on Definition of Fiduciary

The Employee Benefits Security Administration (EBSA) announced an extension of the comment period on its proposal to update the definition of fiduciary.
Reported by

The period for submitting comments on the proposed “Definition of the Term ‘Fiduciary,'” published in the  Federal Register on October 22, 2010, is being extended until February 3, 2011.  

In December, EBSA announced it will hold a hearing March 1 and, if necessary, March 2 in Washington (see “EBSA Sets 2011 Hearing on Fiduciary Definition Change“). The hearing will begin at 9 a.m. EST in the plaza auditorium of the U.S. Department of Labor, Frances Perkins Building, 200 Constitution Avenue NW, Washington, DC 20210.  

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Individuals wishing to testify should submit their requests and outlines by e-mail to e-ORI@dol.gov, subject line: Fiduciary Definition Hearing.  

Each presenter will be allotted ten minutes in which to complete his or her presentation. Those individuals who make oral comments and present testimony at the hearing should be prepared to answer questions regarding their information and/or comments. Those requesting to testify should also be prepared to participate as part of a panel. 

Information about the agenda will be posted on http://www.dol.gov/ebsa no later than February 17, 2011.  

The EBSA notice is here.
The Markets January 12, 2011

U.S. ETF Assets Cross $1T Mark

At the end of December, U.S. ETF assets stood at $1.005 trillion – the first time U.S. ETF assets surpassed $1 trillion.
Reported by

Strategic Insight, an Asset International company, estimates that investors poured an additional $16 billion into U.S. exchange-traded funds (ETFs) in December 2010.   

Flows were driven by equity ETFs, while bond ETFs (with the exception of high-yield bond ETFs) saw net outflows, according to a press release. December’s inflows marked a rise from the $7 billion in net inflows that U.S. ETFs enjoyed in November.   

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December also capped another strong year for ETFs, as full-year inflows to U.S. ETFs totaled $109 billion – the fourth straight year that net inflows to ETFs topped $100 billion.  

“January often features net outflows from U.S. ETFs because of tax maneuvers and investors’ portfolio rebalancing, but U.S. ETF assets should hold at $1 trillion in February and continue their march toward $2 trillion,” said Loren Fox, senior research analyst at Strategic Insight, in a press release. “In 2011, we expect more news in the non-traditional ETF front, including more demand for ‘alternative’ ETFs, and more launches of actively managed ETFs.”

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