After postponing a markup session for the mutual fund transparency bill earlier this month, the House Financial Services Committee has approved H.R. 2420, but with several key changes that take a lot of the punch out of the original proposal.
The Mutual Funds Integrity and Fee Transparency Act of 2003, designed to bring greater transparency and corporate governance regulations to the $6.5 trillion mutual fund industry, has been Rep. Richard Bakers (R-La.) darling as he has tried to bring about reform in the sector. Although there have been no major scandals in the mutual fund industry, investor confidence has been severely shaken in the wake of the Enron and Tyco fiascos, and Baker has been pushing for increased legislation in this industry.