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

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

Rating:DC Lobbyists Attack! Not Rated 5.0 Email Routing List Email & Route  Print Print
Wednesday, August 4, 2004

DC Lobbyists Attack!

News summary by MFWire's editors

The results of the Coalition of Mutual Fund Investors’ study on redemption fees probably do not come as a surprise to many in the fund industry. What was the finding? In essence, that fund companies do not know who their shareholders are.

Specifically, the CMFI found that of the top 50 fund firms with redemption policies, 88 percent admit they either exclude or limit redemption fees on omnibus accounts because they cannot identify customers.

Thirty two of the 50 fund groups have redemption fees on at least one domestic or international equity fund. The lobbyists also found that nine of the 18 fund groups that do not have redemption fees said they may not be able to enforce their restrictions on omnibus accounts.

Most of the top 50 fund companies – 36 of them – have investor holding periods of 30 to 90 days. Nineteen of the 32 companies with redemption fees use the first in, first out (FIFO) method of calculating fees.

The CMFI issued the report on Tuesday. The report includes a table of the top 50 fund firms’ policies and an executive summary.

The lobbyists recommend that intermediaries disclose shareholder identity to funds on a daily or transactional basis.

Senator Peter Fitzgerald (R, Illinois), a primary sponsor of the Mutual Fund Reform Act of 2004, released an accompanying statement on the report, with a reminder that a solution is a mere bill away: "The Mutual Fund Reform Act of 2004 is the only mutual fund reform bill that addresses this glaring deficiency by requiring disclosure of individual shareholders in omnibus accounts," said Fitzgerald.

Not surprisingly, a section of the MFRA requires intermediaries to disclose shareholder identities. Section 216 requires that each account intermediary provide the name, taxpayer identification, mailing address and individual transaction data for each account.

Fitzgerald’s statement on the report did illustrate that the senator understands why intermediaries’ feet need to be held to the fire: "[t]o enforce fund policies fairly and uniformly, there are two possibilities...either the funds themselves do it, in which case they obviously need the information about their omnibus account customers and their trading, or the intermediaries do it, which they have not and which is unlikely since they have a financial disincentive to enforce these policies themselves."

CMFI is a Washington, D.C. lobbying firm started by three partners of D.C. law firm McGuiness & Holch. Niels Holch, Kevin McGuiness, and Markham Erickson started the firm in July of last year. 

Edited by: Theresa Sim


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

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
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:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use