Members of the
"The door to scandal not only opened a bit, it blew wide open," Richard Baker (R-LA) told the House.
Updated, the bill now prevents fund insiders from market timing and for orders to be placed after 4 p.m. for that days prices. It also addresses the issue of stale NAVs by asking the
And going beyond the calls of the ICI and the SEC, which have called for 2% redemption fees for trades within five days, the Baker Bill would allow fund companies to impose higher fees. It also would require fund companies to disclose soft-dollar arrangements with selling and trading partners, directed brokerage arrangements and revenue-sharing arrangements.
It would also require funds to disclose portfolio manager compensation, information with former SEC Chairman Arthur Levitt has said "fund companies will scream" over.
