The House Committee on Financial Services released a General Accounting Office report Monday calling for far greater fund transparency.
The GAO wants funds to tell investors exactly how much they are paying in fees, in dollar amounts, in quarterly statements. The GAO report acknowledges that this could be costly for the industry, citing an Investment Company Institute estimate that annual costs could top $66 million a year. But the GAO counters that on a per-investor basis, the cost would be a mere 35 cents per account. In addition, the GAO acknowledges the Securities and Exchange Commissions concern that the expense of divulging expenses to individual shareholders could prove to be too onerous and expensive of a task, and the SECs suggestion that funds could divulge expenses based on a $10,000 investment.