Number: RL32157
Title: Mutual Fund Reform Bills in the 108th Congress: A Side-by-Side Comparison
Authors: Mark Jickling, Government and Finance Division 
Abstract: The congressional response to the mutual fund investigations included several hearings and bills. Legislative proposals in the 108th Congress included H.R. 2420 (Representative Baker), which passed the House on November 19, 2003; S. 1822 (Senator Akaka), introduced November 5, 2003; S. 1958 (Senators Kerry and Kennedy), introduced November 25, 2003; S. 1971 (Senators Dodd and Corzine), also introduced on November 25, 2003; and S. 2059 (Senators Fitzgerald, Levin, andCollins), introduced on February 10, 2004. All of these bills would have required mutual funds to provide more information to investors about the fees they charge and about the funds financial relationships with stockbrokers and investment advisers. The bills also required that funds governing boards contain majorities of independent directors with no financial or family ties to fund management. S. 1958 proposed the creation of a new mutual fund regulator to carry out registration, inspections, and disciplinary proceedings, and to make rules promoting mutual fund ethics and independence. None of these bills was enacted by the 108th Congress. However, the SEC, using its existing statutory authority, has issued rules that incorporate some of the provisions of the legislative proposals. This report compares the provisions of these legislative proposals. It serves as an historical record of legislative activity in the 108th Congress,
Pages: 19
Date: February 2, 2005