At the Bell

GE Financial buying Centurion Capital

Centurion Capital Group Inc., a Sherman Oaks, Calif., company that has been rapidly gaining share in separately managed accounts, is being acquired by GE Financial Assurance of Richmond, Va.

A unit of General Electric Co., GE Financial views Centurion as a solid stepping stone into the fast-growing separate-account and wrap markets. Analysts estimate that GE Financial is paying about $75 million for Centurion, which saw its assets under management double last year to $2 billion.

The deal brings together the 1,800 independent financial planners registered with GE Financial and the 750 who work with Centurion.

Third Ave. adding international fund

The Third Avenue Funds in New York last week filed documents with the Securities and Exchange Commission, announcing intentions to roll out the Third Avenue International Value Fund.

Amit Wadhwaney, a senior research analyst who has worked at the fund group for seven years, will manage the fund. Like the rest of the Third Avenue funds, the international fund will invest in securities that are both “safe and cheap,” Mr. Wadhwaney says. It will probably be open to investors late this year or early next year, he adds.

Securities industry taking earnings hit

The securities industry will show a net operating loss as a result of the Sept. 11 terrorist attacks of $200 million for the third quarter, instead of showing net operating profits of $1 billion to $1.4 billion that had been expected, the Securities Industry Association reported.

The Washington trade group said that the estimate was restricted to operations, and it did not include extraordinary costs and losses. Those will be largely offset when insurance recoveries are made later.

Also, the industry has moved back its target date for converting to a next-day settlement processing by a year to June 2005, the SIA announced.

The SIA said that its members need to develop plans next year that better address their individual priorities, including business continuity.

The industry still is committed to moving to next-day settlement processing, the association said. Securities now clear and settle three business days after the transaction.

Delay is sought in one-stock futures

Trading in single-stock futures needs to be delayed until the end of March 2002, the securities and futures industries last week said in letters to Rep. Michael Oxley, R-Ohio, chairman of the House Financial Services Committee.

The Securities Industry Association said in its letter that the terrorist attacks Sept. 11 had severely strained the industry’s computer systems, personnel and resources.

The Commodity Futures Modernization Act of 2000 set Dec. 21 as the deadline for full-scale trading in the securities futures.

Emergency powers for SEC backed

The House Financial Services Committee last week unanimously approved legislation that would give the Securities and Exchange Commission more authority and flexibility to respond to emergencies.

Under the measure, the SEC could allow investment companies to close down if a major disturbance disrupted their operations, said Paul Roye, director of the agency’s division of investment management.

Presently, investment companies are allowed to close only when stock exchanges are closed. The bill also would extend the length of time for which the SEC could issue emergency orders to 30 days, which could be extended to 90 days if the agency finds it necessary.

After the Sept.11 events, the SEC issued a series of emergency orders to help the industry regain its footing, but the duration was limited to 10 days.