House Financial Services Capital Markets Subcommittee Chairman Richard H. Baker (R-LA) dashed off a
Baker said that while
The diligence of fund directors and trading costs are other issues Baker wants the SEC to investigate and report back on with legislative or regulatory recommendations by June 11.
On top of that, Congress raises additional issues.
Baker wants the SEC to look into fund distribution practices, particularly with respect to 12b-1 fees. He asked the SEC to consider whether letting investors know how portfolio managers are paid and whether they hold shares in the funds they manage would be useful information. The estimated $2 billion that fund companies pay to brokers for distribution each year is yet another question Congressman Baker raised.
