November 25, 2003   CHAIRMAN COLLINS CALLS ON SEC TO PROVIDE INFORMATION ABOUT ITS INVESTIGATION OF MUTUAL FUNDS’ QUESTIONABLE ACTIVITIES Questions Why Market-Timing Allegations Were Left Unchecked   WASHINGTON, D.C.-Senate Governmental Affairs Committee Chairman Susan Collins (R-ME) today called on the Securities and Exchange Commission (SEC) to explain its recent audit investigations of mutual fund companies. Collins wants to know why the SEC did not act expeditiously on allegations that certain companies, such as Putnam Investments, were engaged in market-timing activities, despite having information about the company’s practices in May 2003. According to news reports, the SEC audited Putnam Investments earlier this year and failed to find any wrongdoing - even though the SEC now believes securities fraud was being committed at that time. “News accounts suggest that the SEC’s Boston office ignored a tip on Putnam’s market-timing practices,” said Senator Collins. “I am requesting the details of what the SEC’s Boston office knew and when, as well as information on SEC examinations of other mutual funds, in order to determine whether the agency is conducting the rigorous oversight on which investors should be able to rely.” In a letter to SEC Chairman William Donaldson, Senator Collins asked for further information about the SEC’s audits of some of the mutual funds that have received the most scrutiny in recent months. She is also seeking copies of any deficiency memos that were provided to those firms. “The SEC has sole jurisdiction over mutual funds,” Senator Collins pointed out. “I am shocked that it has taken so long for the SEC to root out these unscrupulous practices.” The Senate Governmental Affairs Subcommittee on Financial Management, the Budget and International Security held a hearing two weeks ago on mutual fund practices and abuses to focus attention on these widespread problems.   ###   Printable Version   « previous Press Release next Press Release »   1998 - 1999 - 2000 - 2001 - 2002 - 2003 - 2004 - 2005 - 2006 - 2007 November 2003 Press Releases   November 25 current Press Release   November 25 - Sen. Collins Urges President to Coordinate Federal Agroterrorism Preparedness and Response Efforts   November 21 - Senate Approves Sen. Collins’ Bill to Create National Women’s History Museum   November 20 - Sen. Collins Praises DHS for Efforts to Improve Cargo Security   November 20 - Collins Releases GAO Report on Electricity Blackout; Says Findings Emphasize Failings of Proposed Energy Bill   November 19 - Sen. Collins: America’s Agricultural Industry Is Vulnerable To Terrorist Attack   November 18 - Chairman Collins Urges DHS Deputy Secretary Nominee to Make Port Security, Investing in First Responders Top Priorities   November 14 - Collins, Lieberman Urge Administration to Improve Port Security by Funding Key Coast Guard Project   November 13 - Homeland Security Grants Will Help Protect High-Risk Areas, Says Chairman Collins   November 13 - Senator Collins’ Provision to Increase Federal Worker Pay Included in Conference Report   November 13 - Sen. Collins’ Contracting Provisions Included In Defense Authorization Bill   November 7 - Sen. Collins Issues Statement on Civil Service Reform   November 7 - Senator Collins: America Still Vulnerable to Bioterrorist Attacks   November 5 - Sen. Collins to Introduce Legislation to Reform the Postal Service   November 4 - Sen. Collins Comments on Office of Federal Procurement Policy Nominee   November 3 - Sen. Collins Questions Why SEC Has Failed to Detect Mutual Fund Abuses
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