While the Investment Company Institute and politicians are endorsing proposed legislation to reform the mutual fund industry, critics are crying foul, saying recent revisions have gutted the bill of its integrity.

The Mutual Fund Integrity and Fee Transparency Act of 2003, also known as H.R. 2420, was proposed in June by House Capital Markets Subcommittee Chairman Rep. Richard H. Baker (R-LA), and recently approved by the House Financial Services Committee. The bill was intended to shed some light on the dark areas of the $6.5 trillion mutual fund industry in an attempt to create transparency and to help build greater investor awareness and confidence.

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