PALM DESERT, Calif. - The SEC's proposal to require funds to report their after-tax investment performance may prove popular with investors, but it is far from a hit with mutual fund industry lawyers.

The SEC's proposal fails to provide investors meaningful guidance on tax issues, has the potential to mislead and should be withdrawn or totally overhauled, said Robert Zack, associate general counsel for OppenheimerFunds of New York. The proposal, which the SEC made last month, is well intentioned but poorly executed, said Zack, speaking at the 2000 Mutual Funds and Investment Management Conference here last week.

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