WASHINGTON - If the fund industry thought it already had enough legal headaches from Fundgate, its next problem could be a profit squeeze.

Congress and some regulators, including the SEC, are beginning to link the market timing, late trading, directed brokerage and soft dollar issues to fees. During their hearings last month on fund trading practices, ranking members of the Senate Banking Committee challenged the sales, transparency and fee structure of mutual funds.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.