AT THE BELL

Help seen for fee-based brokers

Brokers who charge asset-based fees, as opposed to commissions, and lack discretionary authority over accounts would not have to register as investment advisers under a proposal by the Securities and Exchange Commission. Currently, it’s unclear if fee-based brokers are regulated under the 1940 Investment Advisors Act, which would treat them as money managers. Many brokers say regulation should be based not on how they’re paid, but on what they do for a living.

Schwab wants to refer CPAs

Charles Schwab Corp. is thinking about expanding its referral service nationwide next year. It would steer customers with questions about taxes to knowledgeable certified public accountants. The San Francisco discount brokerage began testing such a program seven weeks ago in Seattle, San Francisco, neighboring Silicon Valley, Atlanta and Los Angeles. Not so coincidentally, Microsoft Corp., which launched an Internet-based adviser referral service in July, announced that 400 accountants have signed on to its Advisor Finder program.

Morningstar likes CPAs, too

Looking to push its software to accountants who double as financial planners, Morningstar Inc. has signed a marketing deal with the American Institute of Certified Public Accountants. Under the terms, the trade group will offer its 330,000 members discounts on the Chicago research firm’s mutual fund software and publications.

GAM likes Japan anew

GAM International Fund hiked its investment in Japan during the last week of October to 15% of its $1.4 billion portfolio from 3%. The move comes as manager Jean-Philippe Cremers struggles to revive the once high-flying portfolio, which is off 18.1% through September and suffered $975 million in net redemptions following a poorly timed play against Japan by former lead manager John Horseman. The average Japan fund was up 91.2% in the year ended Oct. 29.

Bill for after-tax returns

Mutual funds would have to estimate after-tax returns under legislation approved by a House subcommittee. The bill, authored by Rep. Paul Gillmor, R-Ohio, chairman of the Finance Subcommittee, goes to the Commerce Committee for consideration.

Gabelli builds on Pioneer

Value investor Mario J. Gabelli has upped his stake in Boston’s beleaguered Pioneer Group Inc. for the third time this year. He owns 12.3%, up from 11.04% through August, according to public filings. Mr. Gabelli, who presides over Rye, N.Y.-based Gabelli Funds Inc., is well known for investing in takeover stocks. Pioneer, due to release financial results Tuesday, is trading around $12. Down 40.6% from its 52-week high, it has posted losses for five quarters.

No new investors for Aim fund

Aim Advisors Inc. is closing its Small Cap Growth fund — which has a 50.32% return year-to-date — to new investors at 3 p.m. today. The Houston company picked up the portfolio as part of its Chancellor LGT Asset Management acquisition in June 1998. In that time it has grown to $500 million from $30 million.

Planner lobby likes bank dereg

Financial planners see the landmark financial services deregulation as a boon to them, says Duane Thompson, director of government relations for the Institute of Certified Financial Planners in Denver. “You might see some larger firms wanting to buy out financial planner firms,” he says. Still, the bill does not require bank trust officers who advise individuals to register as investment advisers. The Senate approved the bill by a 90-8 vote, which was followed by House passage with a 362-57 vote.

Goldman mulls online riches

Goldman Sachs Group Inc. is developing an online unit to serve wealthy clients, Henry Paulsen, chairman and chief executive of the New York investment bank said at a Securities Industry Association conference.