Two researchers, from the American Enterprise Institute and the Brookings Institution, are calling for the deregulation of the mutual fund industry, The Wall Street Journal reports. Senior Fellows Peter Wallison of American Enterprise and Robert Litan of Brookings say that fund investors would be better served if funds set fees on their own, without oversight of fund directors. They make their case in a book they’ve just published, “Competitive Equity: A Better Way to Organize Mutual Funds.”

One of their key arguments is how deregulation of the airline, telecommunications and brokerage industries resulted in lower costs for investors. The same, the researchers say, would likely happen in the mutual fund industry. The two blame high fees on the inaction of fund directors.

Replacing the mutual fund structure, they suggest, should be a managed investment trust, overseen by a custodial bank.

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