The Investment Company Institute (ICI) has its case for tweaks to the financial services reform bill broadcast in the WSJ Fund Track
. Reporter Daisy Maxey reports that the ICI's Paul Schott Stevens is pushing to improve several issues that could "adversely affect mutual funds and their investors."
That concern remains despite attempts by Massachusetts legislators Senator Scott Brown and Rep. Barney Frank to add clarifying language to the bill that firms will not be more heavily regulated merely due to their size.
Among those are "unworkable forms of bank-like regulation" for mutual funds that are found to be a "source of systemic risk." (Not a foregone conclusion, but still a possibility for some of the largest money funds.
Stevens also points out that funds that are creditors of nonbank financial companies being liquidated under the bill may receive disparate treatment by the Federal Deposit Insurance Corp. or that repurchase agreements would not be promptly enforceable.
The paper also quotes consultant Geoff Bobroff as stating that the mutual fund industry "is likely concerned about its investments in financial-services companies."
Still, it may be what is not yet known about how the bill will effect the market that could reshape the mutual fund industry itself several industry sources have told the MFWire.com.
Sean Hanna, Editor in Chief
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