3.0.0 1037 2023-01-13T04:48:08Z 2023-01-13T04:48:08Z Senate S S 2005-05-16 109 ssbk00 Banking, Housing, and Urban Affairs Committee Senate Standing Referred to 2005-05-16T19:12:15Z 2005-06-28 Sponsor introductory remarks on measure. (CR S7487-7488) IntroReferral B00100 9 Library of Congress 2005-05-16 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 S5222-5223) IntroReferral 2005-05-16 Sponsor introductory remarks on measure. (CR S5221-5222) IntroReferral B00100 9 Library of Congress 2005-05-16 Introduced in Senate IntroReferral 10000 9 Library of Congress A000069 Sen. Akaka, Daniel K. [D-HI] DANIEL AKAKA D HI KOHIKINA N 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 Law Mutual funds Sales promotion Securities fraud Securities industry Securities regulation Stockholders Trusts and trustees Finance and Financial Sector 00 2005-05-16 Introduced in Senate 2005-06-29T19:27:32Z Mutual Fund Transparency Act of 2005 - Amends the Securities Exchange Act of 1934 to require broker disclosure in writing to open-end company (mutual fund) purchasers of the amount of any compensation due the broker in connection with the purchase transaction from any sources.

Amends the Investment Company Act of 1940 to direct the Securities and Exchange Commission (SEC) to require that brokerage commissions as an aggregate dollar amount and percentage of assets paid by a mutual fund company be included in any disclosure of the fees and expenses that may be payable by the holder of the securities of such company.

Revamps independent mutual fund board of directors membership to reduce from 60 percent to 25 percent the permissible number of interested persons serving on the board. Prohibits an interested person from being board chairman. Specifies conditions an interested person must meet to service as a board member.

Directs the SEC to issue final rules defining an interested person who is a "significant service provider," including the investment adviser and principal underwriter of a registered investment company.

Requires the SEC to study and report to Congress on: (1) financial literacy among mutual fund investors; and (2) mutual fund advertising.

Amends the Securities Exchange Act of 1934 to require broker disclosure to each purchaser of investment company shares in a mutual fund transaction of the compensation the broker receives, in dollars and as as a percentage of assets.

Requires each national securities association to issue rules requiring a broker that provides individualized investment advice to a person to: (1) have a fiduciary duty to that person; (2) act solely in the best interests of that person; and (3) fully disclose all potential conflicts of interest and other material information before the investment advice is first provided, and at least annually thereafter.

]]> Mutual Fund Transparency Act of 2005 Display Title Mutual Fund Transparency Act of 2005 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 2005 Introduced in Senate 2005-05-16T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-109s1037is/xml/BILLS-109s1037is.xml 2005-06-28 Sponsor introductory remarks on measure. (CR S7487-7488) 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.