Despite recent criticism that not only the mutual fund industry but the Investment Company Institute itself is in need of reform, the ICI issued a statement saying it is cooperating with regulators in order to halt the downward spiral that the mutual fund business has fallen into.

"We are definitely not in denial. This is a real issue," Vice Chairman Jim Riepe of T. Rowe Price, a member of the Investment Company Institute’s board of governors, told Reuters. "We need to tighten up procedures and rules in the process that have allowed people to excessively trade mutual funds."

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