Monday, October 28, 2013

SEC Examing Mutual Funds Re: Puerto Rico Bonds

The SEC is conducting nationwide, “limited scope examinations” of certain mutual funds that invest in Puerto Rico securities, according to a document obtained by The Bond Buyer and knowledgeable sources. On-site interviews are being conducted Thursday at an investment management firm with exposure to Puerto Rico through its mutual funds, according to a letter from the SEC’s San Francisco Regional Office. The letter was obtained by The Bond Buyer with the recipient’s name redacted.

The exams, which are being carried out by the SEC’s Office of Compliance, Inspections and Examinations and its regional offices, are intended to make sure the commission is up to speed on how much of Puerto Rico’s $70 billion of outstanding debt is held by funds in the U.S. and what those funds are telling their shareholders about the risks involved.

Our firm has been reviewing claims for investors regarding losses in bonds issued by Puerto Rico and in particular the sales practices of large broker-dealers, including UBS, who may have inappropriately marketed the funds. For more information on our work, visit our web site, or call us at 212-609-6544

For more information - SEC Probing Funds Holding Puerto Rico Debt 

The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information contact Mark Astarita at 212-509-6544 or at email us