[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3225 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3225

   To require the Securities and Exchange Commission to improve the 
   disclosure of fees and expenses of open-end investment companies 
          registered under the Investment Company Act of 1940.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2007

    Mr. Castle (for himself and Mr. Moore of Kansas) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
   To require the Securities and Exchange Commission to improve the 
   disclosure of fees and expenses of open-end investment companies 
          registered under the Investment Company Act of 1940.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mutual Fund Fee Reform Act''.

SEC. 2. RULEMAKING ON FUND FEES REQUIRED.

    (a) Initiation of Proceedings.--Within 30 days after the date of 
enactment of this Act, the Securities and Exchange Commission shall 
initiate rulemaking proceedings to revise the requirements of 
regulations applicable to open-end investment companies under the 
Investment Company Act of 1940 relating to the disclosure of 12b-1 fees 
to investors in such investment companies.
    (b) Completion Deadline.--The Commission shall--
            (1) complete the rulemaking proceeding required by this 
        section and prescribe changes to the Commission's rules that 
        the Commission determines to be necessary in the public 
        interest and for the protection of investors not later than 180 
        days after the date of enactment of this Act; and
            (2) make such changes effective one year after the date the 
        Commission prescribes the changes.
    (c) Definition.--For purposes of this section, the term ``12b-1 
fees'' means fees permitted under Rule 12b-1 (17 CFR 270.12b-1) of the 
Securities and Exchange Commission's rules pursuant to the Investment 
Company Act of 1940 (15 U.S.C. 80a-1 et seq.).
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