Even with the recent scandal unfolding in the fund industry, the Mutual Fund Integrity and Fee Transparency Act of 2003 is heading for its twilight rather than the limelight, industry observers said.
Even so, the fund industry is likely to see additional changes as a result of the investigation kicked off by New York's gun-slinging Attorney General Eliot Spitzer. While integrity, or lack thereof, may be at the heart of the scandal, the proposed legislation by Rep. Richard Baker (R-La.) does not specifically address market timing. Instead, industry watchers expect new regulations to come down the pike that will have more of a direct correlation to this and other abuses detailed in Spitzer's complaint.