The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Roye: Fund Directors Should Not Be Fee Fiduciaries Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, November 28, 2005

Roye: Fund Directors Should Not Be Fee Fiduciaries

by: Armie Margaret Lee

Advocates of a market-dictated approach to fund fees have found an unlikely ally in Paul Roye.

Roye, a former director of the Securities and Exchange Commission’s investment management division, said at a conference sponsored by the American Law Institute-American Bar Association earlier this month that the oversight of fund fees should fall in the hands of the market and not fund directors. A summary of his speech was carried by InvestmentNews.

In particular, Roye called for the withdrawal of Section 36(b) of the Investment Company Act of 1940, which states that investment advisers of investment companies "shall be deemed to have a fiduciary duty with respect to the receipt of compensation for services or of payments or of payments of a material nature…"

The absence of clear guidelines for setting fees have resulted in many a lawsuit accusing fund directors of charging exorbitant fees, noted Roye, who is now a senior vice president at Capital Research and Management.

Stripping fund boards of their oversight function, he said, would result in a simpler framework for mutual fund fees.

His suggestions did not end there. Roye also proposed removing 12(b)-1 fees and putting in place a single unified fee that would be reported to investors. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use