Surprise, surprise, the American Enterprise Institute and the Brookings Institution have come together to recommend that the free market determine mutual fund expense ratios and not boards (or government regulators). Investment News reports that the two think tanks are offering a new book entitled Competitive Equity: A Better Way to Organize Mutual Funds. The report recommends the U.S. switch to a more U.K.-style system. Boards would not have the power to approve advisory fees, and advisers would have more incentive to compete by lowering fees, or prices, in the same way other industries do, the report states. 

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