bluuebunny/crossref_metadata_2025 huggingface dataset:
Hedge funds: The regulatory landscape at a crossroads
Authors: Wider Jedd , Scanlan Kevin
Published: June 2007

Hedge funds increasingly are becoming a focus of investors and U.S. regulatory agencies including the U.S. Securities and Exchange Commission (the “SEC”), the U.S. Treasury Department, the National Association of Securities Dealers, and the Commodity Futures Trading Commission as enhanced regulatory attention is forcing the hedge fund industry for the first time since the near‐collapse of Long‐Term Capital Management, L.P. in late 1998 to examine itself more closely. In light of the dismal performance of U.S. stock market indices over the past several years, investors are turning to “absolute” return vehicles, such as hedge funds, that are able to generate current positive returns in a market that has returned consistently laggard results. Investors’ ability to invest in hedge funds has been further enhanced by the increase of hedge funds‐of‐funds registered under the U.S. Investment Company Act of 1940, as amended (the “1940 Act”). Simultaneously, over the past 18 months, the SEC has become increasingly concerned with a multitude of industry occurrences including (i) the widening access of investors to hedge funds, (ii) the unregulated nature of hedge funds, potentially leading to fraud or conflicts of interest with their investors, and (iii) the impact of hedge funds on the markets, especially in relation to their use of short selling. As U.S. regulatory attention remains focused on the hedge fund industry and industry practice and the themes of potential new regulations become apparent, it has become a cautionary period for hedge fund sponsors and investment managers.
Complying with the SEC’s new proxy voting rules
Authors: Clarke Kathleen K. , Miller Paul M.
Published: June 2007

In late January 2003, the Securities and Exchange Commission (SEC) adopted new rules for investment advisers under the Investment Advisers Act of 1940 (Advisers Act) requiring them to adopt and disclose to clients proxy voting policies and procedures. Concurrently, the SEC adopted new rules for registered investment companies (funds) under the Investment Company Act of 1940 (1940 Act) requiring them to disclose their proxy voting policies and procedures to their shareholders and to file their voting records with the SEC. The compliance dates for the new Rules are approaching fast. The Rules should have a significant impact on disclosure of proxy voting by advisers and funds. In a recent survey it conducted, Institutional Shareholder Services (ISS) noted that, of the approximately 3,700 fund groups that will be affected by the Rules, only eleven funds publicly disclose their proxy voting policies on their public websites. Of the eleven funds, seven disclose their proxy voting records and none discloses its policies with respect to conflicts of interest.
Private equity securities: A compliance update for broker‐dealers and investment advisers
Authors: Walsh John H.
Published: June 2007

In the late 1990s, the market for private equity securities (hereinafter “private equity market”) was booming. From quarter to quarter, the number of venture capital deals and the amount invested rose dramatically. Certainly, much of this attention and excitement resulted from the extraordinary market gains experienced by some investors in private equity securities (hereinafter “private equities”). For example, in a book published in 2000, Randall E. Stross described a private equity investment that grew in value by 100,000 percent in less than two years. Today, the extraordinary gains of the late 1990s have subsided. Indeed, some commentators now describe market conditions as a “brutal hit.” The number of deals and the dollars invested are down, and as one commentator put it, there has been an “exodus of momentum investors.” Nonetheless, private equities remain an important alternative investment. Private equities also remain an important compliance area for broker‐dealers and investment advisers. This article reviews some of the compliance issues that could arise in the current environment. Specifically, it focuses on the types of issues that are likely to arise during an examination by the staff of the Securities and Exchange Commission (“SEC” or “Commission”). The article begins with a quick summary of the circumstances under which SEC examiners review broker‐dealers’ and investment advisers’ activities in the private equity market. Next it reviews recent SEC enforcement actions involving private equities and some of the compliance lessons that can be drawn from the cases. Finally, it discusses an examination initiative relating to private equities that the SEC currently has underway. It concludes that private equities remain an important compliance area and an important focus of the SEC’s examination program.
Knowing your customer and culture: An integrated approach to USA Patriot Act Compliance
Authors: Manning Vincent , Spitzner Marc , Ralph C. Martin Ralph C. Martin , Savery Donald J.
Published: June 2007

The financial markets are still sorting through the lengthy list of compliance measures created by the Sarbanes‐Oxley legislation and other reforms being proposed by the SEC, NASDAQ, state attorneys general, institutional investors, and others. This preoccupation should not derail corporate efforts to comply with the mandates of the USA Patriot Act, an especially important measure that is applicable to companies defined as “financial institutions” by the Act. The Act has several purposes: to better detect and deter incidents of money laundering; prevent financing of terrorist activity; and more severely penalize those who launder money by strengthening, broadening, and clarifying federal money‐laundering laws.
The selling away case: Rethinking the firm’s defenses
Authors: Frumento Aegis J. , Korenman Stephanie
Published: June 2007

Few things are more perplexing for a brokerage firm than being sued by someone who is not its customer, for a security it did not sell. The prohibited sales practice formally known as private securities transactions, or more colloquially as “selling away,” often results in just that. And, even worse, the statistical odds are against the firm in the resulting arbitration. The vast majority of such cases in recent years have resulted in a loss to the firm. That is a sobering statistic, for it is difficult, if not impossible, for a firm to prevent a determined broker from selling away. As we show in this article, a firm should be able to protect itself against the acts of an errant broker, but success in doing so requires the firm (a) to establish and diligently execute strong supervisory procedures, and (b) to shoulder the burden of proving to arbitration panels that the broker’s evasion of those procedures could not reasonably have been avoided. Both are essential tasks. The need to be proactive in proving the firm’s defense is perhaps counterintuitive to many defense attorneys. In theory the customer bears the burden of proof on all elements of his claim, and the firm should succeed by merely rebutting the customer’s case. But the recent cases suggest that arbitrators are viscerally sympathetic to customers duped by brokers who sell away from their firms, and in some cases appear to impose liability on the firm not so much in response to the technical weight of evidence, but simply as a “fair” allocation of risk. The cost of the errant broker’s acts probably are visited upon the firm because arbitrators instinctively assume that the firm is better able than the customer both to bear those costs and to police the broker. In evidentiary terms, one could say that, in selling away cases, a presumption has evolved that the firm could have done something to detect and prevent the broker’s acts.
Untoward employee whistleblower claims under Sarbanes‐Oxley
Authors: Bryson Cheryl , Bramnik Robert , Lutner Rachel
Published: June 2007

Few new laws in recent years have inspired as much attention as the Sarbanes‐Oxley Act of 2002 (Act). The procedural and substantive requirements of the Act have, and will continue to have, far reaching impact on and implications for all issuers of securities and their officers, directors, and other controlling persons. However, for employers who are participants in the financial services industry (such as broker‐dealers, investment advisors, fund advisors and managers, and others), the Act raises an unintended and untoward consequence, which appears to have passed under the radar screens of most commentators.
New PATRIOT Act deadlines approach for broker‐dealers: Customer identification programs to be implemented by October 1, 2003
Authors: Santangelo Betty , Jacobs Margaret
Published: June 2007

The anti‐money‐laundering provisions of the USA Patriot Act of 2001 (the “Patriot Act”) continue to cause a profound transformation in the way the United States investment industry conducts its business. Over the past year under the authority of the Patriot Act, which amended the Bank Secrecy Act (“BSA”), the United States Department of Treasury (“Treasury”) and the relevant federal regulators have issued rules requiring a broad range of compliance mechanisms, including: the establishment of anti‐money‐laundering (“AML”) programs; the filing of suspicious activity reports; the prohibition against providing financial services to foreign shell banks (i.e., banks without physical locations); the maintenance of records with respect to accounts for foreign banks; and the sharing of transactional information among financial institutions and between financial institutions and law enforcement.
Breakpoints: The need for education and technology
Authors: Graham Nelson M.
Published: June 2007

The securities industry is no stranger to regulatory compliance. However, the breakpoints issue is emerging as one of its latest challenges. Education and technology are an important part of the solution. A breakpoint is the level or volume of investment at which up‐front commissions on mutual‐fund shares are reduced. Simply put, an investor is rewarded with a monetary discount when he or she purchases a certain amount of funds. The extent of the discount is based on the size of the investment in the mutual fund. Presumably, this is how breakpoints are intended to work. However, the changing landscape of the brokerage industry and its interaction with mutual fund companies has caused many of the tracking mechanisms traditionally used by fund companies to be lost. Along with this, the assurance that customers are receiving correct discounts has disappeared.
Research analyst independence: Efforts to eliminate conflicts lead to conflicting requirements
Authors: Lee Yoon‐Young , Nicolas Stephanie
Published: June 2007

Following a spate of corporate scandals, the bursting of the “Internet bubble,” and media revelations of research analyst bias at the nation’s largest investment banks, regulators launched a series of investigations and rulemaking initiatives that culminated in the adoption of extensive new rules regarding the conduct of research analysts and in the April 2003 global settlement (“Global Settlement”) of enforcement actions against 10 firms relating to research and investment banking conflicts. Although the Global Settlement by its terms only applies to the settling firms, as a practical matter, its reach will be much broader because state regulators and other third parties are looking to it to define a set of “best practices” to supplement the new rules. Although the new rules and the Global Settlement are intended to address the same concern ‐ i.e., conflicts of interest between research analysts and investment banking personnel at multi‐service brokerage firms ‐ their approaches to handling these conflicts reflect different assumptions and result in regulatory regimes that differ in such basic respects as the universe of persons who are deemed to be “research analysts.” These differences are not surprising. The new rules are the product of a lengthy, iterative rulemaking process that was open to the public and in which a diverse range of interested parties participated. In contrast, the undertakings detailed in the Global Settlement were the result of an enforcement action, concluded through bi‐lateral negotiations between the regulators and the 10 firms and without the opportunity for other interested parties to provide input or contribute to the process. However, for firms that seek to comply with both sets of requirements, the overlapping, and at times inconsistent, terms create a confusing and costly environment.
It’s the cover‐up that will get you!
Authors: Razzano Frank C.
Published: June 2007

If the past 30 years of history have taught anything, it is that white‐collar offenders often run afoul of the law by their participation in cover‐ups rather than their part in a substantive criminal offenses. In August 1974, President Richard Nixon was forced to resign as President of the United States ‐ not because of the Watergate break in itself, but his attempts to cover it up. President Clinton was impeached and narrowly avoided indictment ‐ not for his sexual escapades with Monica Lewinsky, but his attempt to redefine the word “is” during his testimony at a deposition. Recently, we have seen the demise of Arthur Andersen, LLP ‐ not as the result of a securities fraud conviction, but a conviction for obstruction of justice. Frank Quattrone was indicted recently for allegedly counseling the destruction of documents, and Martha Stewart was indicted, not for insider trading or the alleged conduct that first brought her under the microscope of the Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”), but allegedly for misleading federal agents. This article will review the current round of indictments against Wall Street luminaries for obstruction, as well as the new obstruction provisions of the Sarbanes‐Oxley Act. It then will make some observations on how these events should impact a corporation’s document retention policy. Finally, it will discuss how compliance programs that aim to enforce the laws of this country and assist governmental inquiries may actually ensnare corporation employees in an obstruction trap.
The independence of financial analysts: evaluation of an alternative proposal
Authors: Krause Andreas
Published: June 2007

Recent evidence suggests that financial analysts have substantial conflicts of interest when publishing their research reports. We argue that not only investors but also listed companies benefit from analyst coverage and suggest that the financial burden of such coverage be shifted entirely to those companies. This article presents a detailed evaluation of a not‐widely‐known proposal that stock exchanges ensure analyst coverage for the companies they list through a levy on their listing fees. We discuss key aspects of the regulatory framework required to ensure the independence of these financial analysts as well as some of its shortcomings. We conclude that this proposal has the potential to ensure the independence of financial analysts more efficiently than the current regulatory approach does.
Investment company and investment adviser compliance programs ‐ New requirements in a changed regulatory environment
Authors: Robinson Keith T. , Hawkins R. William
Published: June 2007

As part of an ongoing and potentially far‐reaching overhaul of investment company and investment adviser regulation, the Securities and Exchange Commission recently adopted Rule 206 (4)‐7 under the Investment Advisers Act of 1940 and Rule 38a‐1 under the Investment Company Act of 1940. These new rules require each fund and adviser to implement written compliance policies and procedures and to appoint a chief compliance officer (CCO) to administer those policies and procedures. While funds and advisers have until October 5, 2004 to comply with the new rules, the breadth of those rules requires a concerted, early effort to implement the new requirements successfully by that date. This article summarizes the requirements of the new rules, focusing on the CCO requirement, and addresses the following issues that advisers and fund boards will confront (among many others) in recruiting and appointing a CCO: (i) the source of the CCO’s compensation, (ii) potential supervisory liability of a CCO, (iii) outsourcing the position of CCO, and (iv) the desired qualifications of a CCO.
A straightforward discussion of compliance program requirements
Authors: Scott David E.
Published: June 2007

The challenges involved in meeting the new requirements of Rule 206 (4)‐7 under the Investment Advisers Act of 1940 and Rule 38a‐1 under the Investment Company Act of 1940 will be substantial for some organizations. At a minimum, all organizations will be required to document their compliance policies and procedures. Also, many firms, particularly fund managers and advisers with large or complex operations, most likely will be required to institute a number of additional control processes as a result of the new rules. Additionally, many organizations probably will need to reevaluate their compliance resource needs in order to successfully implement the new rules by their compliance date. Among the issues this article highlights are coverage of compliance programs in SEC examinations; development of functional policies, procedures, and controls; compliance staffing needs; and oversight by funds’ boards of directors.
Compensation practices for retail sales of mutual funds
Authors: Krawczyk Susan S.
Published: June 2007

During 2003, compensation practices for the retail sale of mutual funds came under fire. Recent revelations about failures in the processing of mutual fund breakpoints had triggered a more in‐depth investigation into mutual fund marketing and compensation practice by securities regulators, Congress, and the states. This article focuses on the regulation of sales compensation practices primarily as it affects a broker‐dealer selling mutual funds in the retail market. It addresses the regulatory framework for three key compensation practices: (1) the use of non‐cash compensation in connection with mutual fund sales; (2) marketing and compensation arrangements providing enhanced compensation to a selling firm as well as to its sales representatives for the promotion of certain fund securities over others, such as proprietary funds over non‐proprietary funds, preferred funds over non‐preferred funds, and Class B shares over Class A shares; and (3) the use of commissions for mutual fund portfolio trades as an additional source of selling compensation for selling firms, a practice sometimes referred to as ”directed brokerage.“
Regulatory Reform Redux: Corporate Governance and the New York Stock Exchange
Authors: Kaswell Stuart J. , Johnson Megan C.
Published: June 2007

On December 17, 2003 the Securities and Exchange Commission (SEC) approved an overhaul of the New York Stock Exchange’s (NYSE’s) system of corporate governance. After questions arose concerning the NYSE’s ability to discharge its self‐regulatory functions following the resignation of former Chairman and CEO Richard Grasso, Interim Chairman John Reed proposed new governance architecture including a newly independent Board of Directors and a separate Board of Executives designed to represent the NYSE’s various constituencies. The new architecture reflects an effort to strike a balance between an independent board of directors and the desire for input from the industry, i.e., self‐regulation. This new structure should not be seen as the SEC’s determination of the future of self‐regulation, but simply as the most recent step in refining and improving the self‐regulatory process at the NYSE and other marketplaces as well.
Baseball and financial markets: The need to evolve
Authors: Dener Adam
Published: June 2007

The corollary between the issues facing both major league baseball and its balance of power and Wall Street’s current trials and tribulations around specialist models, compensation, and governance is telling. Both require a scorecard as well as historical and political perspective. The industry should take the lead, willingly, to initiate and manage its own transformation and can start by ensuring the separation of place and process in all financial markets. Market making is decidedly different from other exchange activities like listing and trading services. The industry should create and adopt independent oversight bodies to audit its self‐governance functions with a particular focus on market‐making activities as well as oversight of how and where securities are listed and traded regardless of venue. Finally, the industry should truly embrace competition and limit self‐dealing ‐ and eliminate the perception of it ‐ thereby restricting participants from markets where their access creates moral hazard.
Hedge Funds: The aftermath of the SEC staff report
Authors: Wider Jedd , Scanlan Kevin
Published: June 2007

On September 29, 2003, the staff (“Staff”) of the Division of Investment Management of the U.S. Securities and Exchange Commission (the “SEC”) issued a report to the SEC entitled the “Implications of the Growth of Hedge Funds” (the “Report”). The Report recommends amending Rule 203(b)(3)‐1 of the Advisers Act to require a hedge fund manager to “look through” each existing client and count each of the hedge fund’s underlying beneficial owners as a “client” of the hedge fund manager for the purpose of determining whether an investment adviser has 15 or more clients and therefore must register under the U.S. Investment Advisers Act of 1940. Such a registration requirement effectively would increase the minimum investment requirement for a hedge fund. The Report does not necessarily support the argument that subjecting hedge funds to periodic examinations by the SEC will help in early detection of fraud and prevention of resulting investor losses. Despite the Staff’s intentions to identify distinctions between customary hedge fund vehicles and other types of investment funds, no clear hedge fund definition or standard was provided in the Report. As a result, there is a danger that the scope of new hedge fund regulations will be too broad
DC circuit vacates the fee‐based brokerage rule
Authors: Ericson Robert B.
Published: June 2007

Purpose

The paper aims to explain the background and to discuss the implications for broker‐dealers of US Circuit Court of Appeals for the District of Columbia March 30, 2007 decision in Financial Planning Association v. Securities and Exchange Commission (FPA) vacating Rule 202(a)(11), which had exempted fee‐based brokerage accounts from the Investment Advisers Act of 1940 (the Advisers Act) under certain conditions.

Design/methodology/approach

The paper explains how the distinction between broker‐dealers and investment advisers seemed relatively clear in the past, how fee‐based brokerage accounts began to blur that distinction, how Rule 202(a)(11) allowed broker‐dealers to offer fee‐based brokerage accounts without complying with the Adviser's Act under certain conditions, how the FPA decision vacates Rule 202(a)(11), and potential consequences of the FPA decision for broker‐dealers.

Findings

The paper finds that if FPA stands, it will have broad implications for broker‐dealers that offer fee‐based brokerage accounts, as the Advisers Act contains a variety of requirements that do not apply to traditional brokerage accounts. Broker‐dealers should assess their fee‐based programs and develop strategies for complying with the provisions of the Advisers Act or restrict their programs to remove them from the reach of the Act.

Originality/value

Written immediately after the FPA decision, this paper provides essential guidance to broker‐dealers on how they will have to reposition their fee‐based programs if that decision stands.
Rule 12b‐1: a look at the past, present and future
Authors: Rosella Michael R. , Pugliese Domenick
Published: June 2007

Purpose

The purpose of this paper is to assess the history, current use, and possible future of Rule 12b‐1 of the Investment Company Act of 1940.

Design/methodology/approach

This paper briefly reviews the history behind the original adoption of Rule 12b‐1, then discusses the ways in which 12b‐1 fees are used today, some of the issues surrounding the Rule, and finally, briefly explores where we might be heading in the future.

Findings

The paper finds that, first adopted in 1980 in an effort to prop up a then ailing industry, Rule 12b‐1 and Rule 12b‐1 fees have been a staple for many mutual funds for almost 30 years. Over this time, the ways in which 12b‐1 fees are used has evolved significantly such that some people now wonder whether the Rule continues to serve the purpose for which it was designed.

Originality/value

The paper provides a comprehensive evaluation of how mutual funds' use of Rule 12b‐1 has changed, what the underlying issues are, and the prospects for reexamination of the Rule.
Litigation in the information age: taking discovery into the digital era to comply with new federal e‐discovery requirements
Authors: Fujitani Riki , Kunisaki Eric
Published: June 2007

Purpose

The paper aims to discuss the growing importance of electronic discovery in commercial litigation; the impact of the e‐discovery amendments to the Federal Rules of Civil Procedure (FRCP), and the steps corporations should take to address the new rules.

Design/methodology/approach

The paper reviews the impact of corporate reliance on electronic information on litigation; regulations that require corporations to protect data; significant cases that established ground rules for discovery of electronic information, including McPeek v. Aschcroft and Zubulake v. Warburg; the requirements of the e‐discovery rules that have been included for the first time in the FRCP; and outlines the steps that corporations should take to mitigate corporate e‐discovery risks.

Findings

The paper concludes that electronic discovery challenges will continue to grow for corporations as e‐discovery becomes increasingly important in commercial litigation; that companies can mitigate their e‐discovery risks by proactively working to meet the new requirements; that forward‐looking companies can gain important “safe harbor” protection by instituting a reliable litigation hold strategy; and that companies can use the new federal rules as an opportunity to better manage and forecast their legal costs.

Originality/value

The paper provides a general review of significant e‐discovery rulings; an explanation of the impact of the amended FRCP on corporations; and practical steps that companies can take to mitigate e‐discovery risks.
Delaware Court of Chancery issues two important decisions on stock options backdating, spring‐loading and bullet‐dodging
Authors: Alexander Stephen , Rissier Warren , Chun Susan
Published: June 2007

Purpose

The purpose of this paper is to describe the implications of two recent decisions in Ryan v. Gifford and In Re Tyson Foods, Inc. concerning stock options backdating, “spring‐loading,” and “bullet‐dodging.”

Design/methodology/approach

The paper summarizes the facts of the two cases, defines spring‐loading and bullet‐dodging, and explains how the court held in both cases that plaintiffs had sufficiently alleged demand futility, that directors of the two corporations had shown bad faith and breached their duty of loyalty, and that the doctrine of fraudulent concealment took precedence over the statute of limitations.

Findings

The paper finds that backdating of options is so egregious that board approval cannot meet the test of business judgment and there is a substantial likelihood of director liability. A director who intentionally uses inside knowledge not available to shareholders in order to enrich employees while avoiding shareholder‐imposed requirements cannot be said to be acting loyally and in good faith as a fiduciary. The best practice for companies is only to grant options that are in strict compliance with their shareholder‐approved option plans as well as applicable accounting, tax, and disclosure rules, and on either fixed‐in‐advance dates or when the companies' insiders would be free to trade.

Originality/value

The paper provides a thorough explanation of two of the most important court decisions to date on stock options backdating, spring‐loading, and bullet‐dodging.
Changes in the investment adviser business in the United States
Authors: Glenn Paul D.
Published: June 2007

Purpose

The purpose of this paper is to discuss the overall profile of SEC‐registered investment advisers in the USA, to identify trends and influences on the profile of investment advisers, and to extrapolate to future expectations in the profile of SEC‐registered investment advisers.

Design/methodology/approach

The approach reviews the SEC registration filings by all investment advisers from a granular level to the overall impact and identifies trends and patterns from a similar analysis applied consistently over a six‐year period of similar annual analysis.

Findings

The paper reveals that the numbers of registered investment advisers continues to grow. Hedge fund advisers were required to register with the SEC until the US Court of Appeals for the DC Circuit entered a decision vacating that rule. Where that decision takes the investment advisory community will be reflected in statistics from future SEC filings by investment advisers. The data show an increasing globalization of the investment adviser business and continued growth opportunities for compliance professionals.

Originality/value

The paper is based on review of statistics of all SEC‐registered investment advisers filed with the SEC on forms ADV Part 1 for 2006. The study analyzed the statistics and drew conclusions relevant to compliance professionals in the investment adviser space.
Protecting investors and the integrity of capital markets
Authors: Borg Joseph
Published: June 2007

Purpose

The aim of this paper is to express a point of view concerning recent recommendations to reduce or eliminate the authority of state securities regulators.

Design/methodology/approach

The paper cites three recent reports by the Committee on Capital Markets Regulation, McKinsey & Co., and the US Chamber of Commerce and makes a case for a continued, strong role of state securities regulators, working alongside federal and SRO regulators.

Findings

The study contends that the cited reports reach the wrong conclusions concerning US capital markets competitiveness and the need to weaken the securities regulatory framework.

Originality/value

The paper expresses a state securities regulator's point of view and provides the reader with web site references for three important recent reports in US capital markets competitiveness.
Draft amendments to the German Investment Act
Authors: Zeller Sven
Published: June 2007

Purpose

The purpose of this paper is to summarize recent draft amendments to the German Investment Act as reflected in the second Draft dated 2 April 2007.

Design/methodology/approach

The paper summarizes proposed changes in regulations for investment companies and product‐related changes in the German Investment Act.

Findings

The paper finds that proposed changes for investment companies include investment companies losing their status as credit institutions, a requirement for an independent director on a supervisory board, a reduction in initial capital requirements, a cancellation of certain reporting obligations, an acceleration of the approval process for fund rules, a shortening of the publication process for fund rule changes, and clarification of the distinction between public distributions and private placements. Product‐related changes include modified provisions on redemption obligations and value determination as well as a requirement to maintain adequate risk management systems for open‐ended real estate funds; liberalized provisions for special funds; the introduction of infrastructure funds; and the introduction of “other funds.” A comprehensive revision of provisions for investment stock corporations is also proposed.

Originality/value

A clear, concise summary of proposed amendments to the German Investment Act by a lawyer who specializes in the field, useful for German investment company compliance officers as well as compliance officers in other countries looking for an introduction to German investment company regulations.
Implementation of the Transparency Directive changes shareholder notification requirements across Europe
Authors: Hougie Andrew , Brescia Jessica , Marion Alexandre , Ebell Katharina , Hudsyn Thierry , Bouvy Pascal
Published: June 2007

Purpose

The purpose of this paper is to describe and compare the different ways in which the shareholder disclosure requirements under the European Union Transparency Directive have been implemented in the UK, France, and Germany. Belgium and Luxembourg have not yet implemented the Directive.

Design/methodology/approach

The paper explains the categories of entities that must comply with reporting requirements, disclosure/reporting thresholds, categories of direct and indirect shareholdings to which these thresholds apply, and the reporting required methods of notification.

Findings

The paper finds that the new European rules broaden the categories of entities that must comply with the reporting requirements. In the UK, France and Germany, thresholds are calculated based on all shares or other financial instruments to which voting rights are attached and indirect holdings must be aggregated and separately identified. Additionally, Germany imposes further notification requirements with respect to options.

Originality/value

The paper provides a useful comparative analysis of new shareholder disclosure requirements in the UK, France, and Germany.
Key performance indicators for infrastructure sustainability – a comparative study between Hong Kong and South Africa
Authors: Ugwu O.O. , Haupt T.C.
Published: June 2007

This paper reports on research that investigated perceptions and prioritization of key performance indicators (KPI) for infrastructure sustainability, from a cross section of construction industry stakeholders in Hong Kong and Republic of South Africa. The results show that although there is general agreement on the indicators, there are noticeable differences in stakeholder ranking, which measures their prioritisation of the various indicators. These differences are closely linked to the level of development of the respective country and hence macro‐level priorities in formulating their sustainable development agenda. The most significant agreements are on indicators related to health and safety, while there are significant disagreements on some indicators related to environment, economy and project management and administration. The study provides empirical evidence of such underlying differences. The paper discusses the implications and challenges in addressing sustainability and sustainable development in developed and developing countries. The paper discusses the findings from the two‐country comparative studies and provides validated indicators for infrastructure sustainability. Recommendations are given on the application of these indicators for decision‐support and integrated sustainability appraisal in infrastructure project (SUSAIP).
The effect of feedback on risk taking in the Australian construction industry
Authors: Trethewy R.W.
Published: June 2007

Feedback in the workplace is identified as an important subset of changing workers’ behaviour and providing effective reinforcement through informative and motivational properties. When properly initiated, feedback can bring about significant positive changes in compliance with safety procedures and is a key component of superior occupational health and safety (OHS) performance. In contrast, little evidence exists to suggest that disciplinary measures eliminate or suppress unsafe employee behaviour and risk taking. Research and quantifiable measurement in the effects of feedback is scant for industries such as construction, which are dominated by contracted labour. This paper reports on research undertaken to assess the effects of feedback on risk taking by contractors undertaking work in the Australian construction industry. The research was conducted over a period of one year and involved 350 participants, ten construction sites and the implementation of on‐site safety interventions including a performance measurement and feedback tool.
Experimental study on strength of cement stabilized clay
Authors: Kim Woo‐Sik , Minh Tam Nguyen , Jung Du‐Hwoe
Published: June 2007

This paper describes the effect of factors on the strength characteristics of cement treated clay from laboratory tests performed on cement mixed clay specimens. It is considered that several factors such as soil type, sample preparing method, quantity of binder, curing time, etc. can have an effect on strength characteristics of cement stabilized clay. A series of unconfined compression tests have been performed on samples prepared with different conditions. The results indicated that soil type, mixing method, curing time, dry weight ratio of cement to clay (Aw), and water‐clay to cement (wc/c) ratio were main factors which can have an influence on unconfined compressive strength, modulus of elasticity, and failure strain of cement stabilized clay. Unconfined compressive strength of soil‐cement samples prepared from dry mixing method was higher than those prepared from wet mixing method.
Sanitary landfill energy harnessing and applications
Authors: Omar Ilyas , Mncwango Siduduzo
Published: June 2007

This paper reviews the potential uses of sanitary landfill biogas, and the possibility of harnessing biogas from the Bellville South Municipal Landfill (within the City of Cape Town, South Africa), as primary energy. This paper will focus on a specific landfill site as a case study. The theoretical research involves investigating aspects on the gas extraction and application possibilities for the site. Thereafter, two industrial gas usage scenarios located within the study area are examined in order to quantify the potential energy production and carbon emissions benefits. The gross energy production from the landfill’s biogas is estimated to be 520 × 106 MJ annually, whilst 262 × 106 and 527 ×109 litres of carbon savings for two different industrial applications are theoretically achievable. On the basis of this analysis, conclusions are drawn regarding the potential for harnessing of the gas in relation to the case study and elsewhere.
Integrating teaching and research in an architectural technology undergraduate model
Authors: Emmitt Stephen
Published: June 2007

This paper seeks to investigate the theoretical and practical links between teaching and research in a teaching led university in the UK. Focus is on the new architectural technology undergraduate programmes that, in theory at least, provide an opportunity to integrate activities. An extensive literature review demonstrated the benefit to both students and academic staff of incorporating research into the curriculum. The research used was centered on an innovative Level 3 undergraduate module, which was monitored for 48 months. The module was designed with the aim of encouraging architectural technology students to approach architectural detailing from first principles within an environmentally responsible framework. The philosophy behind the module was to incorporate lecturers’ research into the module, both to enhance the student experience and to narrow the gap between research and teaching. The module also sought to form a subject integrating role, bringing together management, technology and design via project work. A brief overview of the development of the module and the teaching and learning strategy is provided before looking at delivery and evolution of the module. The students’ evaluation of the module, via a questionnaire survey, is then reviewed and issues for further consideration highlighted. A number of observations are made relating to the integration of knowledge, which have implications for all contributors to construction education.
Student perceptions of the first year civil engineering course content
Authors: Miller Seirgei , Haupt Theo C. , Chileshe Nicholas
Published: June 2007

The cooperative education model adopted by Universities of Technology in South Africa embodies the notion that both education and training are equally essential. It incorporates productive work into the curriculum as a regular and integral element of a higher education course. The present model involves three cooperative partners namely, the university, student and employer. It should, therefore, be evident that cooperative education has two main components, namely an academic component and an experiential learning component, both of which are integral to its success. To enable students to understand the relationship between academic subjects and the world of work, cooperative education involves restructuring the educational experience. For some time, industry employer representatives have suggested that education and training offered at Universities of Technology do not always address the needs of industry. They argue that graduates lack the necessary theoretical skills, training and managerial understanding to ensure immediate meaningful employment. These inadequacies contribute to unemployment and the lack of advancement opportunity within their chosen careers. In addition, there is a need to examine the perceptions of students regarding course content before they go into industry. This was the motivation for this research. The aims of the research project are twofold. Firstly, to examine the course content offered within the civil engineering diploma programme, and secondly to measure the levels of subject satisfaction. Using an exploratory approach through a survey of 123 students, this study explores the course content and satisfaction levels based on study areas in the first year program. The results indicate that students generally perceive the subject Communication Skills to be least satisfying whereas Mathematics is considered to be the most satisfying subject. This paper concludes by presenting the subject satisfaction index tool which contributes to the range of intervention strategies as envisaged by the CIDB. This further contributes towards the improvement of the overall quality of University of Technology civil engineering academic programs and also the subsequent productive employability of its graduates.
Development of B2B electronic data interchange using XML format
Authors: Fu Hsin‐Pin , Chang Tien‐Hsiang , Wang Collin , Hu Kuan‐Yu
Published: June 2007

Purpose

To propose some recommendations to improve the model that the Taiwanese Government developed for business to business data‐interchange standards for XML format (DIS_XML) of seven industries.

Design/methodology/approach

This study examines the DIS_XML development of Taiwan from a practical perspective. After an assessment of industrial structures and characteristics and recommendations are proposed for the development model.

Findings

The study concludes that the structure and function of development organization, expert knowledge, top management involvement and support, communication between relevant departments and the achievement of consensus are key factors in establishing the industrial DIS_XML.

Practical implications

The study revealed the development content of government promoting the DIS_XML of seven industries in Taiwan and will be of assistance to other countries that are inclined to promote.

Originality/value

Governmental involvement of the sort demonstrated by the Taiwanese Government is a rare phenomenon in the world. Such government involvement has directed the thrust of business involvement in the development of DIS_XML, and will ultimately determine whether it succeeds.
Integrating local suppliers in a global supply network
Authors: Thomas Andrew , Barton Richard
Published: June 2007

Purpose

The development of a local area supply chain network (LASCaN) is only as good as the skills and technological capabilities of the companies within that network. Recent studies have pointed to the lack of capability amongst local suppliers and hence many OEMs have now moved towards global supplier networks to meet demand. The purpose of this paper is to highlight the drivers which push companies to develop global supplier networks.

Design/methodology/approach

Through the development of a case study approach, the paper chronicles the design, development and implementation of a supplier development programme (SDP). The programme is subsequently evaluated for its effectiveness in the subject company.

Findings

The LASCaN is evaluated rigorously and describes accurately the effectiveness of the system and how the integration of the LASCaN into the global network allows the company to meet the demands of a fluctuating, mass customised market.

Originality/value

The proposed SDP framework for the successful development of a LASCaN contributes to the existing knowledge base on supply chain systems and subsequently disseminates this information in order to provide impetus, guidance and support towards increasing the development of local suppliers in an attempt to move the UK SME sector towards world class manufacturing performance.
Production and operations managers and logistics managers: a cross‐country comparison
Authors: Burcher Peter G. , Lee Gloria L. , Sohal Amrik S.
Published: June 2007

Purpose

The purpose of this paper is to explore the contribution of production and operations managers (POMs) and logistics managers (LMs) in improving manufacturing and service operations, comparing experiences in Australia and Britain.

Design/methodology/approach

The findings are based on surveys of the two occupations in the two countries. Thus, the focus is on comparing and contrasting two strategically placed occupations within the supply chain and in two traditional manufacturing economies in developed countries, in opposing hemispheres of the world.

Findings

The working lives of 254 Australian and 195 British POMs and 303 Australian and 168 British LMs are explored to see how well prepared they are for the business challenges of today, whether they see the need for changes in the ways in which they work and what satisfactions they derive from their worlds of work?

Practical implications

Insights are provided for senior management into the deployment and personal and professional development needs of two key occupations within supply chain management.

Originality/value

The findings from the research give fresh insights into the ways in which managers in the two areas of responsibilities in the two countries.view their worlds of work
A variation management system supporting six sigma
Authors: Tannock James D.T. , Balogun Oluwatuminu , Hawisa Hisham
Published: June 2007

Purpose

The purpose of this paper is to describe new methods to manage variation in complex manufacturing process chains and to show synergies between the variation risk management (VRM) and six‐sigma approaches.

Design/methodology/approach

The research methodology was experimental prototyping conducted in collaboration with industry partners. A prototype IT system was developed and tested to implement the approach. A quality cost‐based system was used to assess variation at each operation stage, for every product characteristic.

Findings

A comprehensive approach to the management of manufacturing variation is introduced, based on a new process risk matrix which can be used to specify an individual variation risk for every manufactured characteristic, throughout a manufacturing process chain. The approach has been implemented in a prototype software system and is aimed at the complex products such as those manufactured by the aerospace industry.

Research limitations/implications

The IT approach described was developed during the research and is not commercially available.

Practical implications

Manufacturing industry should be able to use this approach, in particular the process risk matrix concept, to develop more effective management of product variation and resultant cost, in complex process chains.

Originality/value

The paper describes a novel approach to combine VRM and six‐sigma concepts, and introduces the process risk matrix as a structure to understand process variation.