The mutual fund industry may soon face more pre-sale disclosure requirements, if Representative Paul Kanjorski (D-Pennsylvania) has his way. On Tuesday morning Kanjorski and the rest of the House Committee on Financial Services, led by Barney Frank (D-Massachusettts), were scheduled for a "full committee markup" of Kanjorski's H.R. 3817, the Investor Protection Act of 2009.

Among other things, H.R. 3817 would give the SEC the authority "to promulgate rules designating documents or information that must precede a sale to a purchaser of securities issued by a registered investment company," i.e. a mutual fund. It would also give the SEC the authority to examine, at any time, "all records of each registered investment company, and each underwriter, broker, dealer, or investment adviser that is a majority-owned subsidiary of such a company."

The committee planned to discuss the Private Fund Investment Advisers Registration Act of 2009 (H.R. 3818) and the Accountability and Transparency in Rating Agencies Act (H.R. 3890) at the same meeting. 

Edited by: Neil Anderson, Managing Editor


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