Insights November 2001

The November 2001 issue of Fund Democracy Insights proposes an alternative approach to the regulation of fund fees, discusses the differences between the federal and state conceptions of fund directors' roles, and evaluates the Gartenberg standard of review under section 36(b) in today's market.

Table of Contents - November 2001

On the Regulation of Fund Fees. . . . . . . . . . . . . . . . . . 1

The Role of Fund Directors . . . . . . . . . . . . . . . . . . . . . . 7

Gartenberg Revisited . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Worth Reading on the Internet . . . . . . . . . . . . . . . . . . . 16

Top

Links to resource materials (.pdf files require Adobe Acrobat for viewing):

On the Regulation of Fund Fees

Section 36(b) of the Investment Company Act

Section 15(c) of the Investment Company Act

Gartenberg v. Merrill Lynch Asset Management, Inc. 694 F.2d 923 (2d Cir. 1984)

Investment Company Act Amendments of 1995, H.R. 1495, 104th Cong., 1st Sess., § 6 (1995) (proposed unified fee investment company)

John P. Freeman and Stewart L. Brown, Mutual Fund Advisory Fees: The Cost of Conflicts of Interest. 26 J. Corp. L. 609-673 (2001) (electronic version not available)

Arthur Levitt, SEC Chairman, Testimony before the House Subcommittee on Finance and Hazardous Materials, Committee on Commerce, Concerning Transparency of in the United States Debt Market and Mutual Fund Fees and Expenses

Top

The Role of Mutual Fund Directors

Section 15(c) of the Investment Company Act, supra

Gartenberg, supra

Rule 2a-7 under the Investment Company Act

Letter from Douglas Scheidt, Chief Counsel and Associate Director, Division of Investment Management, SEC, to Craig Tyle General Counsel, Investment Company Institute (Apr. 30, 2001)

In the Matter of Parnassus Investments, Administrative Proceeding No. 3-9317 (Sep. 3, 1998)

Role of Independent Directors of Investment Companies, Investment Company Act Release No. 24082 (Oct. 14, 1999) (discussing role of fund directors under federal law in text accompanying notes 12 - 25)

Top

Gartenberg Revisited

Gartenberg, supra