Akaka seeks more
disclosure of fund fees
Massachusetts' top securities regulator William Galvin called on Congress yesterday to pass new laws to curb mutual fund trading abuses, saying Securities and Exchange Commission proposals don't go far enough.
On Wednesday, the SEC proposed new rules to prevent illegal after-hours trading of mutual funds and said it would strengthen the role of independent directors on mutual fund boards in an effort to combat improper trading in the $7.1 trillion mutual fund industry.
Galvin said the SEC's rules are insufficient on their own because violations bring only civil penalties.
Meanwhile, Sens. Peter Fitzgerald, an Illinois Republican, and Daniel Akaka, a Hawaii Democrat, have introduced a bill to force greater disclosure of funds' brokerage fees and strengthen the independence of fund boards.