To paraphrase George Orwell’s science-fiction classic, Nineteen Eighty-Four, in which the government takes mind control of all citizens — the same could happen to mutual fund advertisements in 2012. That’s when past performance could go down "Memory hole."
The 884-page Financial Reform Conference Report contains a provision on page 474 that MME warned readers about back in April. Section 918, "Study Regarding Mutual Fund Advertising," states that the U.S. Comptroller General will conduct a hard-hitting study on mutual fund ads that could even bring standard Securities and Exchange Commission consumer protections into question. (See "Senate Financial Reform Bill Hits Mutual Fund Ads," and "Geithner Urged to Exclude Funds From Financial Overhaul," MME 4/22/10 and 4/26/10.)