S. 2059 · 108th Congress
Mutual Fund Reform Act of 2004
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Never voted on. It didn't reach a floor vote before the 108th Congress ended, so it expired. A bill has to be introduced again to be considered in a new Congress.
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FitzgeraldSponsor12 cosponsors · 7 D, 5 R
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Collins
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Levin
FH
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Hollings
TK
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Kennedy
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Lautenberg
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R
Lugar
RD
D
Durbin
GV
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Voinovich
NC
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Coleman
MC
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Cantwell
JM
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McCain
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Pryor2 signed on when it was introduced; the rest joined later. Cosponsors who withdrew aren't shown.
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.
What it does: CRS summary · Introduced in Senate · Feb 10, 2004
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.
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: Mutual Fund Reform Act of 2004
Latest action (Feb 10, 2004): Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S797-802)
Policy area: Finance and Financial Sector · Origin: Senate · Introduced: Feb 10, 2004
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.