FOR IMMEDIATE RELEASE
April 7, 2004
Organization supports Congressional Mutual Fund Reform
WHY: The Senate Committee on Banking, Housing and Urban Development held the last of a series of hearings on Mutual Fund Reform
WHAT: Consumer Union and other consumer groups believe legislative reforms are needed to supplement SEC rule proposals to adequately address mutual fund reform and restore investor confidence
• Congress should adopt legislation to strengthen mutual fund competition.
• Three areas needed to extend authority to the SEC
• Provide authority to impose governance requirements directly and strengthen the definition of independent director.
• Adopt legislation to ban soft dollars, the practice of allowing funds to pay for operating expenses out of shareholders assets through undisclosed portfolio transaction costs.
• Give the SEC the authority to provide end-to-end tracking of mutual fund transactions.
WHO: Consumers Union, Consumer Federation of America, Democracy Fund, and Consumer Action
• Sally Greenberg, Consumers Union
• Barbara Roper, Consumer Federation of America
• Mercer Bullard, Democracy Fund
• Kenneth McEldowney, Consumer Action
HOW: Contact the Senate Banking Committee to keep the pressure on the SEC to deliver the reforms Chairman Donaldson promised.