110 HR 3225 IH: Mutual Fund Fee Reform U.S. House of Representatives 2007-07-30 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.

I 110th CONGRESS 1st Session H. R. 3225 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.

1.

Short title

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

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.).