April 7, 2004

Consumers Union, other Groups to submit Letter to Senate Committee on Banking, Housing, and Urban Development Urging Mutual Fund Reform

Organization supports Congressional Mutual Fund Reform

WHY: The Senate Committee on Banking, Housing and Urban Development held the last of a series of hearings on Mutual Fund Reform

WHAT: Consumer Union and other consumer groups believe legislative reforms are needed to supplement SEC rule proposals to adequately address mutual fund reform and restore investor confidence

• Congress should adopt legislation to strengthen mutual fund competition.

• Three areas needed to extend authority to the SEC

• Provide authority to impose governance requirements directly and strengthen the definition of independent director.

• Adopt legislation to ban soft dollars, the practice of allowing funds to pay for operating expenses out of shareholders assets through undisclosed portfolio transaction costs.

• Give the SEC the authority to provide end-to-end tracking of mutual fund transactions.

WHO: Consumers Union, Consumer Federation of America, Democracy Fund, and Consumer Action

• Sally Greenberg, Consumers Union
• Barbara Roper, Consumer Federation of America
• Mercer Bullard, Democracy Fund
• Kenneth McEldowney, Consumer Action

HOW: Contact the Senate Banking Committee to keep the pressure on the SEC to deliver the reforms Chairman Donaldson promised.