January 13, 2004 (PLANSPONSOR.com) - The roster of
companies getting entangled in the ongoing mutual fund
trading scandal got a bit longer with word that Scudder
Investments says one of its clients may have market timed
some of its international mutual funds.
In regulatory filings with the US Securities and
Exchange Commission (SEC), Scudder said it had “identified
an investment advisory firm that had an arrangement with
the organization that resulted in frequent trading,
including trading in your fund, inconsistent with
registration policies,” Reuters reported.
Scudder included the admission in prospectus supplements
for various share classes of the Scudder European Equity,
International Equity and International Select Equity funds.
Scudder said the trading arrangement was up and running
before the funds’ current managers took over in 2002 and
that it ended the setup in early 2003.
The firm said it is looking into whether the trading
hurt other shareholders and will work with the funds’
directors to pay back shareholders for losses and that it
continues to cooperate with regulators.
In a separate statement, Deutsche Asset Management said:
“As part of a review that is not yet complete, Scudder has
identified an arrangement with an outside investment
advisory firm that traded frequently in a small number of
funds … We have provided the preliminary results of this
review to the appropriate regulators and the fund boards.”
Scudder is Deutsche Bank AG’s US retail brand.
More than 20 fund companies have said they either have
disciplined employees, are conducting internal reviews or
are under investigation for possible improper fund trading.
State and federal regulators are staging a
wide-ranging mutual fund industry probe focusing on market
timing, late trading and fund sales abuses.
Same-Sex Benefits Measure Squeaks by Montana
Supremes
December 31, 2004 (PLANSPONSOR.com) - By the
narrowest of margins, Montana's Supreme Court says that the
Big Sky State's public universities must provide their gay
employees with insurance coverage for their domestic
partners.
>The majority in the 4-to-3 decision said the
decision had nothing to do with the rights of gay couples
to marry. But a dissenting judge criticized his colleagues
as “radically altering common law marriage in Montana,”
according to the New York Times.
>The policy at issue in Montana limited dependent
health-care coverage to the employee’s children and to the
spouses of married employees.
The policy required proof of marriage – and one option
available to heterosexual couples was a sworn statement
that they were part of an informal arrangement known as a
common-law marriage, which requires that the couple live
together and be known in the community as husband and wife.
Couples who signed the affidavit were required to swear
that they had “mutually consented and contracted to become
husband and wife” and assumed “all the responsibilities and
duties which the law attached to such a relationship.”
>The court’s majority focused on this option, saying
that making it available only to heterosexual couples
violated the equal protection clause of the state’s
Constitution.
However, Justice Jim Regnier, writing for the majority
said, “We have not been asked nor will we address the
question of whether Montana’s marriage statutes
discriminate against same-sex couples by denying them the
right to marry.”
>That statement notwithstanding, in a concurring
decision, Justice James C. Nelson criticized the recent
constitutional amendment banning same-sex marriage – one of
eleven such state measures on the ballot in 2004, all of
which passed the electorate in those states. “Sadly,”
Nelson wrote, “many politicians and ‘we the people’ rarely
pass up an opportunity to bash and condemn gays and
lesbians despite the fact that these citizens are our
neighbors and that they work, pay taxes, vote, hold public
office, own businesses, provide professional services,
worship, raise their families, and serve their communities
in the same manner as heterosexuals.”
Dissenting Voice
>Justice Jim Rice, in dissent, said the majority had
radically revised Montana’s marriage laws.
“This case,” Rice wrote, “is about the legal status of
marriage in our society, specifically, whether the law
still recognizes marriage as the transcendent societal
relationship upon which government may base its
decisions.”
>Under the decision, Justice Rice continued,
“marriage would be rendered simply a societal option
without exclusive legal significance.”
“It is the first time that any state high court has
ruled that a state has a constitutional obligation to
provide domestic partner health-care benefits,” said James
D. Esseks, the litigation director of the American Civil
Liberties Union’s Lesbian and Gay Rights and AIDS Projects,
which represented the two lesbian couples who brought the
suit challenging the state’s policy, according to the Times
report. “It’s a recognition by the Montana Supreme Court
that the government can’t treat gay people differently on
economic issues.”
>Sheila M. Stearns, Montana’s commissioner of higher
education, said the university system “will do everything
we need to do to comply with the decision and the equal
protection clause of the Montana Constitution.”
Since the case was decided on state law grounds, a
request that the United States Supreme Court hear the
case would almost certainly be turned down.