Legislative Update: Congressman Baker Introduces The Mutual Funds Integrity and Fee Transparency Act of 2003
By Investment Management Practice Group
On June 11, 2003, Richard H. Baker, Chairman of the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, introduced new mutual fund legislation in Congress. The bill, entitled The Mutual Funds Integrity and Fee Transparency Act of 2003, followed by one day a report to Congress by the staff of the Securities and Exchange Commission addressing several issues raised by Chairman Baker relating to mutual fund regulation. The Bill seeks to improve the disclosure of costs incurred by mutual fund investors, impose new responsibilities on fund directors to monitor fund distribution and soft dollar arrangements, strengthen the independence of fund boards of directors, and extend certain listed company audit committee standards to mutual funds.