All mutual fund companies are expected to have a chief compliance officer in place by Oct. 5, and smaller mutual funds may not be equipped to make such a change, Dow Jones Newswires reports.
The scandals worst effects have been the distrust created in investors and money lost by fund companies, but some of the residual effects may cause smaller companies to shut down. Obeying the new rules, coupled with trying to stay in the fight with larger companies that are able to cut fees, may cause some fund shops to become so unprofitable that they might just call it a day.
So while most agree that the new compliance regulations will help investors, it seems likely that they might also hurt the non-
