The Securities and Exchange Commission is showing “zero tolerance” for financial services companies that are not complying completely with new rules. That’s the observation by partner Steven Howard of the law firm Thacher Profitt & Wood, where he heads the investment management practice group. Speaking at a seminar in New York, Howard noted that the SEC has been conducting “the most extensive examinations it’s ever done with funds, investment advisers and money managers.” According to Investment News, Howard predicted that compliance costs for U.S. mutual funds will continue to rise and eat up between 6% and 10% of total operating costs.
