As a result of investigations and enforcement actions initiated by the SEC and several State regulators in 2003-2005, as much as $3.5 billion has been collected in penalties and fines from more than 30 mutual fund complexes for improper market timing and later trading activities. Under the SEC's Fair Fund program, these monies are in the process of being distributed to millions of individual investors who were harmed by these trading activities.
In each enforcement action that has been settled with a mutual fund complex, the SEC has hired an Independent Distribution Consultant to develop a plan to distribute the collected monies (including interest earned) to the affected individual investors. This process has taken a significant amount of time since these enforcement actions were settled, as a number of legal, operational, and technical issues had to be resolved.
CMFI has submiited comments to the SEC on the methodology being used to distribute these restitution payments to investors. As a public service, CMFI also monitors each of the individual Distribution Plans and prepares a periodic summary on the status of the distribution process for each Plan.
Click on the Documents tab to review the latest CMFI summary of the individual Distribution Plans and CMFI's earlier comment letters to the SEC on several of the proposals to distribute these payments.. Click also on the tabs for Comments and Blog Entries to review the latest developments on this restitution process.