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.
"It's a disclosure stampede," says James Riepe, vice chairman of fund company T. Rowe Price. "Everyone with an agenda has gotten their disclosure included, so fund companies and investors are overwhelmed." Investor advocate Mercer Bullard of Fund Democracy says, "the SEC has said prospectuses already are overburdened. Adding more to them now won't help shareholders and will actually impede their understanding."