Washington, D.C. -- Senator Daniel K. Akaka (D-Hawaii) today introduced a bill to provide greater protections for millions of Americans investing in mutual funds. The Mutual Fund Transparency Act of 2005, would require disclosure of mutual fund fees and costs, strengthen board independence and enhance the transparency of financial relationships. Nearly 100 million Americans rely on mutual funds for retirement, savings for children's college education, or other financial goals and dreams.

"My bill includes a number of provisions intended to strengthen mutual fund boards. It will require that mutual fund boards have independent chairmen and that 75 percent of their directors be independent," Senator Akaka stated. "This legislation strengthens the definition of who is considered an independent director and requires independent directors to be approved by shareholders. These steps are necessary to strengthen the ability of mutual fund boards to detect and prevent abuses of investor trust."

Senator Akaka praised the Securities and Exhange Commission (SEC) for its enforcement and regulatory efforts in addressing weaknesses and abuses in the mutual fund industry. The SEC has adopted several reforms that mirror provisions found in the Mutual Fund Transparency Act introduced by Senator Akaka in 2003.

"Although the SEC has undertaken a number of impressive reforms, I have chosen to reintroduce a modified version of my original bill to further strengthen the independence of boards, make investors more aware of the true costs of their mutual funds, and prevent several key reforms from being rolled back."

Endorsing this measure is the Consumer Federation of America, Fund Democracy, Consumer Action, Consumer Union and the AARP.