FOR IMMEDIATE RELEASE
April 14, 2004

MUTUAL FUND REFORM

Consumers Union, other Groups Submit Letter to SEC Chairman William Donaldson Responding to Congressional Testimony On Mutual Fund Reform

Organization urges legislative reforms that SEC Chairman declines to endorse

WHY: Chairman Donaldson discounts letter sent by consumer groups to the Senate Banking Committee at a hearing on mutual fund reform.

WHAT: Consumer Union, CFA and other consumer groups respond to Donaldson and demonstrate that the SEC has not adequately addressed concerns about mutual fund operating costs.

• Past SEC statements give groups reason to doubt the Commission will require all portfolio transaction costs in the expense ratio report.

• Mutual fund operating costs not included in the SEC point-of-sale disclosure proposal.

• SEC’s proposals fail to address dollar amount disclosures on account statements, the need to expand the fiduciary duty of fund directors to areas beyond management fees, or require that brokers and advisers consider costs when recommending products.

WHO: Consumers Union, Democracy Fund, Consumer Federation of America, 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 help keep the pressure on the SEC to deliver the reforms Chairman Donaldson promised.