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MUTUAL FUND OPERATING EXPENSES
Overview
Proposals to address the disclosure of mutual fund operating expenses.
Position
SIA supports the periodic disclosure of the estimated amount of fund operating expenses per $1,000 of investment. The $1,000 figure will make it easier for investors to calculate the amount of fees paid, and is a more useful figure for smaller investors than the SEC-proposed $10,000 of investment. SIA opposes disclosure of the actual dollar amount paid per account because it would be far more difficult for investors to comparison shop, and would require enormous and difficult systems modifications.
Status
Pending House and Senate legislation deal with operating expenses is in various ways. The SEC recently adopted a final rule to disclose the fund-expense ratio (in shareholder reports) per hypothetical $1,000 investment. This is concurrent with H.R. 2420 (Baker bill) and S. 1958 (Kerry bill). Other legislation requires the disclosure of an actual dollar amount per investment.
Updates
SIA Comments To The SEC Regarding Confirmation Requirements And Point Of Sale Disclosure Requirements For Transactions In Certain Mutual Funds And Other Securities - pdf 5.0, April 12, 2004
