Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Senators Propose Mutual Fund Bill Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, November 5, 2003

Senators Propose Mutual Fund Bill

by: Nicole Halsey

Today, Senator Peter Fitzgerald (D-Illinois), Senator Daniel Akaka (D-Hawaii) and Senator Joe Lieberman (D-Connecticut) introduced a bill that would push for major changes in the mutual fund industry.

Some of the provisions include:

  • Mandating that most of a mutual fund’s board be neutral by requiring three-quarters of directors and the chairman of a fund's board to be independent. And, directors would have to be reapproved by shareholders every five years.

  • Full disclosure of salaries for portfolio managers plus brokerage commissions.

  • Disclosure of fees for brokerage commissions when calculating a fund’s expense ratio.

  • Requiring brokers brokers who sell funds to inform customers in writing of their commissions on any trade

  • Requiring the SEC to study whether investors would benefit from creating an oversight board to inspect and discipline mutual-fund directors. The SEC would also be mandated to require the SEC to study financial literacy and the General Accounting Office to survey mutual-fund advertising practices.

    However, with only three weeks left to Congress’ session before the holiday break, it’s highly unlikely that this bill will be passed. When Congress reconvenes in January, its will have to be reintroduced along with all the other bills that are likely to come. The Senate Banking Committee, which oversees the fund industry, has planed a hearing next week with SEC Chairman William Donaldson, New York Attorney General Eliot Spitzer and other regulators.

    In the meantime, Senator Richard Baker (R-Baton Rouge), chairman of the capital markets subcommittee of the house financial services committee, has already introduced a Senate bill with similar provisions such as open fee disclosure, portfolio transaction fees, disclosure on manager compensation and holdings, breakpoints and revenue-sharing agreements. 

    Stay ahead of the news ... Sign up for our email alerts now
    CLICK HERE

  • 0.0
     Do You Recommend This Story?



    GO TO: MFWire
    Return to Top
     News Archives
    2024: Q2Q1
    2023: Q4Q3Q2Q1
    2022: Q4Q3Q2Q1
    2021: Q4Q3Q2Q1
    2020: Q4Q3Q2Q1
    2019: Q4Q3Q2Q1
    2018: Q4Q3Q2Q1
    2017: Q4Q3Q2Q1
    2016: Q4Q3Q2Q1
    2015: Q4Q3Q2Q1
    2014: Q4Q3Q2Q1
    2013: Q4Q3Q2Q1
    2012: Q4Q3Q2Q1
    2011: Q4Q3Q2Q1
    2010: Q4Q3Q2Q1
    2009: Q4Q3Q2Q1
    2008: Q4Q3Q2Q1
    2007: Q4Q3Q2Q1
    2006: Q4Q3Q2Q1
    2005: Q4Q3Q2Q1
    2004: Q4Q3Q2Q1
    2003: Q4Q3Q2Q1
    2002: Q4Q3Q2Q1
     Subscribe via RSS:
    Raw XML
    Add to My Yahoo!
    follow us in feedly




    ©All rights reserved to InvestmentWires, Inc. 1997-2024
    14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
    Privacy Policy :: Terms of Use