WASHINGTON – Capital Markets Subcommittee Chairman Richard H. Baker (R-La.) held a hearing on Nov. 4 to question mutual fund regulators and industry representatives on recently revealed allegations surrounding certain mutual fund trading practices that may have disadvantaged long-term investors. Among others, the Committee invited Securities and Exchange Commission Enforcement Director Stephen M. Cutler, Massachusetts Secretary of the Commonwealth William Galvin and New York Attorney General Eliot Spitzer. On July 23, the House Financial Services Committee, led by Chairman Michael G. Oxley (R-Ohio), passed Rep. Baker’s Mutual Fund Integrity and Fee Transparency Act, H.R. 2420, which is pending consideration by the full House of Representatives. “Since Committee passage of H.R. 2420 we’ve seen a number of extremely disturbing revelations concerning the mistreatment of mutual fund investors,” Rep. Baker said. “Subcommittee members have a serious responsibility to get the facts about these particular incidents of alleged late trading and market timing, but we have an equal obligation to consider how these revelations beg the question of whether our proposed legislative reforms for mutual funds go far enough.” The Financial Services Committee has prompted extensive oversight of the mutual fund industry over the past year including comprehensive studies on fees; transparency and governance by the SEC and the General Accounting Office; as well as hearings featuring testimony from Vanguard founder Jack Bogle and Investment Company Institute Chairman Paul Haaga. Reps. Oxley and Baker have also corresponded with the SEC on numerous mutual fund issues such as proxy voting, portfolio disclosure and an investigation of breakpoint overcharges. Rep. Baker also outlined oversight steps at a testimony before the Senate Governmental Affairs Committee on Nov. 3.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.