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Purpose and Services
This page was last updated on February 8, 2001. Articles by Fund Democracy: Archives Industry Trying to Defang Law Disclosing the Tax Bite on Fund Returns, TheStreet.com (Feb. 8, 2001). View the full text of this article. Abstract: If you're concerned that the new Republican administration will mean the end of investor-friendly securities regulation, you should take heart from the Securities and Exchange Commission's recent adoption of a rule requiring that funds disclose their after-tax returns. The rule owes its existence to a Republican, Rep. Paul Gillmor of Ohio, who proposed a bill in 1999 to force the SEC to require mutual funds to disclose their after-tax performance. Before the Senate could act, and to avoid being upstaged by Congress, the SEC adopted a rule on its own. Even so, the fund industry is still pushing the SEC to roll back the rule. Based on early reactions to the industry's efforts, it is unlikely to succeed. Bailey Wood, Gillmor's press secretary, told me that "Congressman Gillmor is happy with the rule, and he wishes it to remain exactly as is." Paul Roye, who heads the SEC's funds division, was more direct. "I hope the ICI is not saying to hide the [after-tax return] information," Roye told Ignites.com. |