The fund industry's most prominent shareholder advocate is urging Congress to create an oversight board to protect mutual fund shareholders from fraud.

Mercer Bullard, founder of shareholder advocacy group Fund Democracy and assistant law professor at the University of Mississippi, is scheduled to testify before the Senate Subcommittee on Financial Management today that a special task force dedicated to overseeing mutual funds is necessary in stamping out corruption and restoring investor confidence. His testimony will focus on the widespread trading abuses uncovered by state regulators including late trading, market timing, the use of stale pricing and the overcharging of commissions.

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