3.0.0 1822 2023-01-15T08:48:05Z 2023-01-15T08:48:05Z Senate S S 2003-11-05 108 ssbk00 Banking, Housing, and Urban Affairs Committee Senate Standing Referred to 2003-11-05T15:51:17Z 2003-11-05 ssbk00 Banking, Housing, and Urban Affairs Committee Senate Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S14040-14041) IntroReferral 2003-11-05 Sponsor introductory remarks on measure. (CR S14038-14040) IntroReferral B00100 9 Library of Congress 2003-11-05 Introduced in Senate IntroReferral 10000 9 Library of Congress A000069 Sen. Akaka, Daniel K. [D-HI] DANIEL AKAKA D HI KOHIKINA N F000442 Sen. Fitzgerald, Peter [R-IL] PETER FITZGERALD R IL 2003-11-05 True L000304 Sen. Lieberman, Joseph I. [D-CT] JOSEPH LIEBERMAN D CT I. 2003-11-05 True D000563 Sen. Durbin, Richard J. [D-IL] Richard Durbin D IL J. 2004-03-24 False Finance and Financial Sector Brokers Commerce Conflict of interests Ethics Fees Financial statements Government Operations and Politics Government paperwork Information disclosure (Securities law) Investment advisers Investors Mutual funds Sales promotion Securities fraud Securities industry Securities regulation Stockholders Trusts and trustees Finance and Financial Sector 00 2003-11-05 Introduced in Senate 2003-12-01T19:19:02Z Mutual Fund Transparency Act of 2003 - Amends the Securities Exchange Act of 1934 to require brokers to disclose in writing to purchasers of mutual funds the amount of any compensation received or to be received by the broker in connection with the transaction.

Prohibits such disclosure from appearing exclusively in either a registration statement or prospectus of an open-end company, or any other filing with the Securities and Exchange Commission (SEC).

Amends the Investment Company Act of 1940 to direct the SEC to require, by rule, that brokerage commissions paid by an open-end company be included in any disclosure of fees and expenses payable by a holder of company securities in a registration statement or other filing with the SEC, including the calculation of expense ratios.

Reduces from 60 percent to 25 percent the number of interested persons who may serve on the board of directors of a registered investment company. Prohibits any interested person from serving as board chairman.

Prohibits an interested person from serving on such board unless the person has been: (1) approved or elected by the shareholders at least once every five years; and (2) found, on an annual basis, not to have any material business or familial relationship with the registered investment company, a significant service provider to the company, or any entity controlling, controlled by, or under common control with such service provider that is likely to impair his or her independence. Declares that no action taken by the board of directors of a registered investment company may require the vote of an interested director.

Requires the members of the board of directors who are not interested persons to establish a committee composed solely of such members to: (1) select nominees for election to the board; and (2) adopt qualification standards for such nominees.

Directs the SEC to study and report to specified congressional committees on: (1) whether the best interests of investors in mutual funds would be served by creation of a Mutual Fund Oversight Board; and (2) financial literacy among mutual fund investors.

Directs the SEC to prescribe rules for disclosure by a registered investment company of the compensation structure for individuals employed by the investment adviser to manage the company portfolio, and the ownership interest of such individuals in the securities of the registered investment company.

]]> Mutual Fund Transparency Act of 2003 Display Title Mutual Fund Transparency Act of 2003 Official Title as Introduced A bill to require disclosure of Financial relationships between brokers and mutual fund companies and of certain brokerage commissions paid by mutual fund companies. Introduced in Senate IS Short Titles as Introduced Mutual Fund Transparency Act of 2003 Introduced in Senate 2003-11-05T05:00:00Z 2003-11-05 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S14040-14041) text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.