Despite its key role in promoting sound corporate governance and restoring public trust, the mutual fund industry is not taking the necessary steps to right the ship.

A recent PricewaterhouseCoopers survey revealed that the industry has not yet taken on the leadership role it could even though it understands the need to move in that direction. In fact, 60% of the 43 senior executives polled said that trust in financial institutions has been eroded so much that major structural reform is required, both at a regulatory and individual level. More than 80% of the respondents said that failure to upgrade their own standards of governance could have an adverse effect on capital and make their stock more volatile and less appealing to investors.

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