A prominent legislator is hard-pressed to shine a light on loosely regulated sate-sponsored college savings plans, calling on federal securities regulators to draft significant reforms that include improving fee disclosure.

In a July 15 letter to Securities and Exchange Commission Chairman William Donaldson , House Financial Services Committee Chairman Michael Oxley (R-Ohio) urged the chief securities regulator to consider revamping the structure of 529 plans. Oxley noted in the letter that he is particularly concerned with "the lack of consistent transparency of fees and performance, the oversight of the plans and reports that high fees may effectively eliminate the plans’ tax benefits."

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