Secretary of the Treasury John Snow called on the Securities and Exchange Commission to continue its restructuring of the mutual fund industry but urged more reforms in order to not sacrifice the positive aspects of funds.

"The Administration supports the SEC taking strong action when harm is done to investors, but believes that care must be taken to preserve the valuable benefits and flexibility that mutual funds provide," Snow told the Financial Services Roundtable, a lobbying group, in Scottsdale, Ariz.

Outlining the four main problems the scandal has uncovered – improper trading like late trading and market timing, governance, conflicts of interest and fee disclosure – Snow said the "open dialog" the SEC has used during the scandal is supported by the Administration.

"So please know that your government wants to work with you," he said. "We know that you help this economy grow, and that's critical to the job creation we need."

Recently, a few Republicans in Congress have urged the SEC to lighten up on its idea to install a "hard 4 p.m." halt time for trades, citing unintended consequences that investors may experience.

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