State-sponsored 529 college savings plans are the latest investment vehicle to draw scrutiny from legislators, as Congress prepares for a series of hearings to examine their fees, broker commissions and tax efficiency.

Ask your average mutual fund investor what impact the scandal has had on them, and what do you think you will hear?

The National Association of Securities Dealers has formed a mutual fund task force to recommend ways to make fund costs and distribution agreements more transparent to investors. Members of the mutual fund and broker/dealer communities will sit on the task force, which is being formed as a result of talks between the NASD and the SEC.

Janus Discussing Brokers

Sen. Peter Fitzgerald has two wishes this year.

Few people in the mutual fund industry, outside of those who have been charged in the scandal, have been under as incredible pressure or faced as tough questions in the past few months as Paul Roye, the nation's top cop for the mutual fund industry.

With longstanding mutual fund practices such as directed brokerage and revenue sharing likely headed for the junk pile, the heated debate over the merits of soft-dollar research commissions has intensified.

Most financial advisers share their clients' level of concern about the mutual fund scandal, according to a survey of 124 financial advisers conducted by Select Sector SPDRs, for which State Street Global Advisors serves as investment advisor. A quarter of advisers expressed little concern about the scandal, mostly because they feel the problems are limited to only a few certain companies.

William Galvin makes no apologies for his outspoken nature or his insistence on twisting the arm of Putnam Investments until the firm cried "uncle."

In the wake of the mutual fund scandal, exchange traded funds (ETFs), small niche managers and fund groups not implicated in the scandal have been raking in assets and pumping up their relative market share of the industry's $5 trillion in non-money market assets.

Mutual fund industry critics need not look far to find the root cause for the industry's scandals. The problem lies in the industry's predominant governance structure. Aside from the Vanguard Group, external management is the order of the day, meaning that conflicts of interest over fund expenditures aren't just common, they are inherent. Equally inherent is the risk that the external manager will allow practices that serve its interests, to the detriment of fund shareholders.

Regulators are searching for a rescue plan for the fund industry scandals, but the effort is doomed if the rulemakers continue in-the-box thinking, said David Silver, former president of the Investment Company Institute.

Most in the mutual fund industry will remember 2003 as the year of the scandal.

After filing over 80 disciplinary actions in the past two years, the National Association of Securities Dealers is tightening its noose on the variable annuities industry. Late last month, the regulator proposed new rules for variable annuity sales that would increase disclosure and make best-practice guidelines mandatory and enforceable.

It's going to be a lot easier to bring products to market in the near future. Or is it?

The hits just keep on coming.

Ever wish you were somebody else? Well, thieves have been making it happen at a more rapid pace, hijacking the identities of mutual fund customers and other patrons of the financial services industry and reeking havoc at an alarming rate.

Putnam Investments last week announced it is improving the fee disclosure in Putnam CollegeAdvantage, the 529 plan it runs in Ohio, and also reducing the plan's annual maintenance fee.

Have you wondered what will become of the rapscallions who are guilty of ripping off mutual fund investors?

Traditionally, bulge-bracket firms have given away research in exchange for trading volume and high trading commissions. The commissions paid for part of the research, while investment-banking fees paid for the rest. Over time, Wall Street firms built up expensive operations, flush with highly paid salespeople and large travel and entertainment budgets.