DoubleLine, the brainchild of former The TCW Group high-yield fixed-income CIO Jeffrey Gundlach, can now call itself a registered investment adviser after receiving approbation from the Securities and Exchange Commission (SEC) last week.
The SEC approved the bond firm’s application Dec. 23, a press release stated.
“The principals of DoubleLine are gratified to have received approval of our registration application under the Investment Advisers Act,” Gundlach said in the statement. “The approval has occurred on a timeline that will allow us to continue to welcome, without interruption, those many clients with whom we have developed relationships of great personal trust and confidence over the years.”
On Dec. 4, Gundlach was terminated from his lead TCW investment position due to threats he made to leave the firm and take “key employees with him,” Erin Freeman told Investment Management Weekly Dec. 7.
And 10 days later, Gundlach announced the formation of his Los Angeles-based new money management firm, as well as the addition of Philip Barach, a former group managing director of the TCW mortgage-backed securities group. Gundlach will serves as its CEO and Barach was tapped to assume presidential duties.
Separately, on Dec. 18, DoubleLine announced that Ronald Redell, former president and CEO of the TCW funds and the TCW strategic income fund, joined the firm as its new mutual fund business president.
In total, “nearly 40 people have departed TCW” for Gundlach’s start-up management group to date, Freeman said previously.
As a result of its new registration with the federal agency, DoubleLine might be subjected to new restrictions to investment advisers and strengthening client protections provisions that were approved by SEC’s Board of Commissions Dec. 16.
The new investor safeguards under the rule 206(4)-2 of the Investment Advisers Act of 1940 would require an annual surprise examination and custody controls review as an attempt to reveal any discrepancies to the SEC in a timely fashion, SEC Chairman Mary Schapiro said previously.
All adopted adviser rules are effective 60 days after their publication in the Federal Register, an SEC release said.
A Positive Augury
Gundlach and his firm said they are optimistic for the approval and the future of their young company.
“Our team looks forward to the successful launch of DoubleLine funds early in the New Year,” Gundlach said in the release.