A Harvard Law School professor and consultant to the SEC is recommending that the Congress enact changes that would make U.S. mutual funds more competitive with their European brethren. Among John C. Coates' recommendations are changes in how fund shareholders are taxed, reports the Wall Street Journal's Arden Dale
Coates specifically calls for Congress to allow fund shareholders to defer paying capital gains from their funds until after they sell the fund shares as long as they own fewer than two percent of the mutual fund's total shares.
He also recommends allowing fund investors to realize capital losses with the same manner and timing as capital gains.
Coates provided his recommendations in a report to the Committee on Capital Markets Regulation
, an independent, nonpartisan research organization.
Sean Hanna, Editor in Chief
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