WASHINGTON, D.C.—Senate Governmental Affairs Committee Chairman Susan Collins (R-ME) today said the Securities and Exchange Commission’s efforts to reform the mutual fund industry is a step in the right direction, but more work remains to be done.
“I support the SEC’s reported move to tighten late trading rules, strengthen compliance measures and require disclosure of market timing policies,” said Senator Collins. “These new rules represent a good start towards cleaning up the mutual fund industry, but even more needs to be done to ensure director independence and combat market timing. We need to make sure that the SEC has the legal authority and resources that it needs to effectively oversee the industry.”
The SEC met today to discuss mutual fund reforms, following on the heels of last month’s Subcommittee hearing into mutual fund abuses and letters sent by the Committee to SEC Chairman William Donaldson questioning its recent audit investigations of mutual fund companies.
“The SEC is responsible for overseeing the mutual fund industry,” Senator Collins noted. “Yet it appears that the Commission has not responded quickly and decisively to allegations of unscrupulous industry practices.”
Senator Collins has asked the SEC for further information about the SEC’s audits of some of the mutual funds that have received the most scrutiny in recent months. She is also seeking copies of any deficiency memos that were provided to those firms.