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The Library of Congress - Thomas
United States Senate



Banking & Corporate Governance

In response to the abuses found in the mutual fund industry, Senator Akaka introduced the first mutual fund reform bill in the Senate, S. 1822, the Mutual Fund Transparency Act of 2003. The legislation mandated that a confirmation notice be provided to mutual fund investors by brokers, brokerage commissions be counted as an expense, and mutual fund governance be strengthened. The Securities and Exchange Commission (SEC) has promulgated rules that mirror provisions included in S. 1822. These include requiring fund boards of directors to be led by an independent chairman, increasing the proportion of fund directors that must be independent from one-half to three-fourths, and establishing a mutual fund confirmation notice.

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