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Investment Company Institute President Paul Schott Stevens said on Wednesday that H.R. 2386, the "College 529 Invest in Education Savings for Tomorrow Act of 2005," and S. 1112, the "College 529 InvEST Act of 2005"--two bills that would make permanent the tax-free treatment of qualified deferrals from 529 college savings plans--will benefit millions of American families saving for college.

By stepping down as Chairman of the Securities and Exchange Commission, William H. Donaldson puts at risk the very reforms he fought for during his two-year tenure, BusinessWeek reports. Although a Republican, Donaldson ended up siding with Democrats over key issues such as mutual fund reform, hedge fund regulation and securities exchange modernization.

Even as the SEC tries to improve disclosure in the aftermath of the mutual fund trading scandals, it may be burdening its investors with more information than needed, and in the process, driving up the cost of compliance to companies, according to an article in Forbes.

The Securities and Exchange Commission has taken some positive steps in examining mutual fund companies but more could be done, according to a Government Accountability Office report released Tuesday.

William Galvin, secretary of the commonwealth of Massachusetts, expressed doubts about President Bush's appointment last week of Californian Republican Christopher Cox as the new chairman of the Securities and Exchange Commission, Dow Jones reports.

Armada Funds said on Wednesday that effective June 13 it will be officially called Allegiant Funds. National City Investment Management, the investment advisor to Armada Funds, will become Allegiant Asset Management. In addition, Allegiant Institutional Services will include custody and 401(k) services.

As if the American International Group (AIG) case was not complicated enough, a deal cut with Joseph H. Umansky may further complicate cases being brought forth by the Justice Department and the Securities and Exchange Commission, the New York Times reports.

Hedge fund performance rose modestly in May by talk of losses associated with General Motors, according to hedge fund tracking firms, the New York Times reports. Even so, the year has been a wash for many fund of funds.

The NASD said on Wednesday that it has fined 15 broker-dealers more than $34 million in total for directing brokerage in exchange for preferential treatment for certain mutual fund companies.

NEW YORK -- Former Bank of America broker Theodore C. Sihpol III was found not guilty this afternoon on 29 of the 33 counts charged against him, including grand larceny, the Associated Press reports.