Regulatory Action

Coalition of
Mutual Fund
Investors

The Coalition of Mutual Fund Investors is an advocacy organization that is dedicated to promoting the interests, needs, and concerns of mutual fund investors before Congress and federal regulatory agencies.

The Coalition supports full disclosure of all mutual fund activities as well as improvements to the current regulatory protections available to investors. Recent media attention about market timing and late trading problems in the mutual fund industry make it clear that mutual fund investors need to organize together to convince Congress and federal regulators to enact appropriate mutual funds reforms. For more information about CMFI and its mission statement, click on About CMFI.

The Coalition is working to advance a legislative and regulatory agenda that will improve the regulation of mutual funds for the benefit of investors.

To learn more about the issues under consideration by Congress, click on Legislative Action.

Several Congressional Committees in the U.S. Congress have held hearings during the 108th, 109th, 110th, and 111th Congresses on the mutual fund industry. Click here to review the testimony and statements from these hearings.

The U.S. Securities and Exchange Commission (SEC) is also actively considering mutual fund regulatory changes and the Coalition is advocating its agenda before this important agency. CMFI has commented on a number of these SEC proposals that would require changes to the mutual fund industry. You can follow these developments and read the Coalition's comment letters through the Regulatory Action link.

If you are interested in the status of SEC Plans to distribute more than $3 billion in restitution payments to individual investors, click here for CMFI's updates on these Plans.

CMFI monitors litigation against mutual fund companies by individual investors. Click here for the status of individual cases of interest.

CMFI also provides investors with educational materials about mutual fund policy issues and related topics. You can review these educational materials on the Coalition's Resources page.

If you would like to sign up for free email alerts about the Coalition and its efforts, please click here. If you would like to contribute financially to the Coalition, please click here.

CMFI Studies on Hidden Mutual Fund Accounts
Updated August 2010

Extensive research by CMFI has determined that the largest mutual fund groups are unable to monitor or regulate excessive short-term trading in shareholder accounts held by third party financial institutions.

On August 18, 2010, CMFI released a White Paper updating its research regarding the cost to shareholders of hidden mutual fund accounts. This White Paper confirms CMFI's estimate of $8.47 billion in annual payments to brokers for account maintenance and shareholder servicing activities. These payments to brokers are not benefiting investors and should be replaced with a more efficient and effective record keeping framework for shareholder accounts. Click here to review a copy of the CMFI White Paper entitled "The Costs of Providing Shareholder Services to Hidden Mutual Fund Accounts."

On February 26, 2010, CMFI released a White Paper documenting the cost to shareholders of hidden/omnibus accounts. CMFI estimates that as much as $8.4 billion is being taken from shareholders each year to pay for account servicing activities. Click here for a copy of the CMFI White Paper.

Click here to review an earlier version of this White Paper on shareholder servicing costs (10/13/2009).

On March 30, 2009, CMFI released a White Paper regarding the risk of market timing and other arbitrage activities in these hidden mutual fund accounts. Click here for a copy of the CMFI White Paper.

Click here to review the most recent prospectus filings of the largest mutual fund groups. These public statements confirm that investors are not protected within third party omnibus accounts (updated 3/1/2010).

Click here to find more information about the 2007 CMFI Study and the results from the earlier 2004 and 2005 CMFI omnibus account studies.

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