Regulation

A series of legal challenges to the mutual fund industry's system of independent directors has suffered another setback.

PALM DESERT, Calif. The SEC will scrutinize the business relationships of mutual fund accountants as part of a larger effort intended to strengthen the independence of fund directors.

PALM DESERT, Calif. The SEC is considering proposing that mutual funds be required to disclose more than they currently do about the effect of taxes on investment performance.

The SEC is proposing to shut down transfer agents for mutual funds which have not solved serious year 2000 computer problems by Oct. 15.

Mutual fund companies could be required to disclose the impact of taxes on portfolio returns, if a bill that has been introduced in the U.S. House of Representatives passes. Congressmen Paul Gillmore (R-Ohio) and Edward Markey (D-Mass.) introduced a bill, the Mutual Fund Tax Awareness Act of 1999, on March 11.

SEC Chairman Arthur Levitt is expected to recommend changes in the way mutual funds are governed at an industry conference on mutual fund regulation which begins today.

NEW YORK - The Clinton Administration would welcome testimonials from the mutual fund industry on the capability of the average American investor to make sound investment decisions for his social security funds, with the help of professionals, said Carolyn Weaver, a member of the Clinton Administration Social Security Advisory Board. Weaver spoke on privatization of the Social Security Administration at a symposium sponsored by MFS Investment Management to mark the 75th anniversary of its mutual funds.

Edgar Online now allows individuals to receive e-mail alerts of the Securities and Exchange Commission's Edgar reports through a new service called Edgar Online Personal. Located at www.edgar-online.com/personal, the service costs $9.95 a month, although a free trial is available at www.edgar-online.com/trial.asp?src=eolpt. Users can supply up to ten variables, including ticker symbol, industry group, filing type, filing category and geography to define information most important to them.

WASHINGTON - The corporate structure that the mutual fund industry says is a key to its effectiveness - the system which permits independent mutual fund directors to serve on numerous boards in the same fund complex - appears unlikely to change any time soon.

WASHINGTON - The alphabet soup of fund share classes has become so confusing that the mutual fund industry, the SEC and Congress should examine whether the law that created the system should be changed, according to an industry executive.