MutualFundWire.com: The SEC Mulls Changes in Broker-Sold Funds

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Tuesday, July 21, 2009

The SEC Mulls Changes in Broker-Sold Funds

Changing the rules on fund distribution is one of the items on the Securities and Exchange Commissions wish list. SEC Chairman Mary Schapiro provided a partial list of the SEC's projects during her testimony to the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises on July 14. The subcommittee is part of the House Committee on Financial Services.

Mary Schapiro
SEC

Among the items on a list of potential "to-do's" for the SEC was "Eliminating the statutory provision that prohibits broker-dealers from competing on price when selling mutual fund shares."

That rule change would potentially allow brokerage firms to charge different commissions than rivals selling the same fund.

Schapiro also called for Congress to authorize the SEC to "verify client assets with mutual fund and adviser custodians."

The two items were among nine that Schapiro introduced during her opening testimony.

"I look forward to working with this Subcommittee as you develop legislation in these and other areas," she said.

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