FOR IMMEDIATE RELEASE
April 7, 2004
Consumers Union, other Groups to submit Letter to Senate Committee on Banking, Housing, and Urban Development Urging Mutual Fund Reform
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.
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