Mutual Fund Reform Act of 2004
Latest action · Jun 28, 2004 Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedJun 3, 2004
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Mutual Fund Reform Act of 2004 - Amends the Investment Company Act of 1940 to: (1) reduce from 60 percent to 25 percent the maximum number of interested persons serving on the board of directors of a registered investment company; and (2) prohibit an interested person of such company from serving as chairman of such board of directors.
States that a fiduciary duty is owed by: (1) the board of directors to act with loyalty and care in the best interests of shareholders; and (2) an investment adviser to supply material information necessary for independent directors to review and govern the company.
Revises guidelines governing independent accounting and auditing.
Directs the SEC to require adoption of a code of ethics by a registered investment company and by its investment advisers and principal underwriters.
Directs the SEC to require each senior executive officer of an investment adviser to certify in periodic reports to shareholders that specified procedures are in place to verify compliance with transparency and specified ethical considerations.
Grants whistleblower protection for employees of publicly traded companies and registered investment companies.
Directs the SEC to develop standardized disclosures for: (1) expense and transaction cost ratios; (2) cost structures; (3) investment adviser compensation; (4) point of sale; and (5) additional disclosures of broker compensation.
Repeals Rule 12b-1 fees (asset-based distribution expenses paid by investors).
Prohibits: (1) revenue sharing; (2) directed brokerage fees; (3) soft dollar arrangements; (4) short-term trading; and (5) joint management of mutual funds and hedge funds.
Cosponsors
Members who signed on, in the order they did.
Actions 3
Everything that happened, newest first.
- Jun 28, 2004Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
- Jun 3, 2004Introduced in House
- Jun 3, 2004Referred to the House Committee on Financial Services.
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Accounting
- Administrative procedure
- Advertising
- Auditing
- Auditing and auditors
- Brokers
- Business ethics
- Chief executive officers
- Civil Rights and Liberties, Minority Issues
- Commerce
- Commercial arbitration
- Conflict of interests
- Congress
- Congressional investigations
- Congressional reporting requirements
- Consultants
- Consumer education
- Contracts
- Corporate finance
- Corporate management
- Corporation directors
- Corporation reports
- Cost accounting
- Crime and Law Enforcement
- Crime prevention
- Deceptive advertising
- Derivative securities
- Disciplining of employees
- Discrimination in employment
- Dismissal of employees
- Electronic government information
- Executive compensation
- Executive reorganization
- Families
- Federal-state relations
- Fees
- Finance and Financial Sector
- Financial services
- Financial statements
- Government Operations and Politics
- Government paperwork
- Government publicity
- Governmental investigations
- Grievance procedures
- Independent regulatory commissions
- Information disclosure (Securities law)
- Information services
- Insider trading in securities
- Internet
- Investment advisers
- Investment banking
- Investments
- Investors
- Labor and Employment
- Law
- Lawyers
- Legislation
- Marketing
- Mutual funds
- Restrictive trade practices
- Sales promotion
- Science, Technology, Communications
- Securities and Exchange Commission
- Securities fraud
- Securities industry
- Securities regulation
- Stock exchanges
- Stockholders
- Telephone
- Trusts and trustees
- Valuation
- Web sites
- Whistle blowing
Text 1
Each version as it was printed, newest first.
- Jun 3, 2004Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.