Lieberman Proposes Mutual Fund Reform

October 28, 2003 (—Senator Joseph Lieberman (D-Connecticut) outlined a plan to introduce stronger regulations on mutual funds to safeguard investments of the average middle-class investor, something he says President Bush has failed to do.

>The presidential candidate included in his reform proposal the creation of an office within the Securities and Exchange Commission (SEC) to oversee the mutual fund managers and ensure protection for the average investor. He also proposed increased regulations to reduce conflicts of interest from mutual fund managers, according to the New York Times.

>These increased regulations include more checks and balances, including a rule stating compliance officials will report to the board of the mutual fund instead of the executives.   Also, Lieberman suggested restricting the number of   portfolios each director is allowed to oversee, hoping to increase the amount of examination given to each portfolio, the New York Times said.

>Lieberman said that Bush failed to protect middle-class investors from mutual fund practices that hurt the average investor and that new policies are required to restore Americans’ faith in the market. The senator also alleged that Bush did not set standards to maintain fairness and honesty in mutual funds, the AP reported.

>This announcement, made at a campaign stop in Concord, New Hampshire, is the first time a presidential candidate has addressed the growing mutual fund investigation.

Alison Cooke

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