The Coalition of Mutual Fund Investors is actively promoting its reform agenda on Capitol Hill. Important legislative proposals affecting individual investors are provided below.

Click here for a listing of Congressional hearings on mutual fund issues.

111th Congress

H.R. 3429, the "Generate Retirement Ownership Through Long-Term Holding Act of 2009," a bill to amend the Internal Revenue Code of 1986 to allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies. Introduced by Representative Paul Ryan (R-WI) on July 30, 2009.

S. 1276, a bill to require investment advisers of private funds, including hedge funds, private equity funds, venture capital funds, and others to register with the Securities and Exchange Commission, and for other purposes. Introduced by Senator Jack Reed (D-RI) on May 16, 2009.

S.1082, the "Generating Retirement Ownership Through Long-Term Holding Act," (GROWTH Act) a bill to amend the Internal Revenue Code of 1986 to allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies. Introduced by Senator Mike Crapo (R-ID) on May 20, 2009.

S. 344, the "Hedge Fund Transparency Act," a bill to require hedge funds to register with the Securities and Exchange Commission. Introduced by Senator Chuck Grassley (R-IA) on January 29, 2009.

H.R. 711, the "Hedge Fund Advisor Registration Act of 2009," a bill to amend the Investment Advisers Act of 1940 to remove the registration exception for certain investment advisors with less than 15 clients. Introduced by Congressman Michael Capuano (D-MA) on January 27, 2009.

H.R. 712, the "Pension Security Act of 2009," a bill to amend title I of the Employee Retirement Income Security Act of 1974 to require in the annual report of each defined benefit pension plan disclosure of plan investments in hedge funds. Introduced by Congressman Michael Castle (R-DE) on January 27, 2009.

H.R. 713, the "Hedge Fund Study Act," a bill to require the President's Working Group on Financial Markets to conduct a study on the hedge fund industry. Introduced by Congressman Michael Castle (R-DE) on January 27, 2009.

110th Congress

S. 2473, the "Defined Contribution Fee Disclosure Act of 2007," which would amend the Employee Retirement Income Security Act of 1974 (ERISA) to provide special reporting and disclosure rules for individual account plans, introduced by Senator Tom Harkin (D-IA) on December 13, 2007.

H.R. 3225, the "Mutual Fund Fee Reform Act," which would require the SEC to improve the disclosure of fees and expenses in 12b-1 mutual fund plans, introduced by Congressman Michael Castle (R-DE) on July 30, 2007.

H.R. 3185, the "401(k) Fair Disclosure for Retirement Security Act of 2007," providing for improved disclosure and reporting rules for individual 401(k) retirement plans, introduced by Congressman George Miller (D-CA) on July 26, 2007.

H.R. 2834, a bill to change the preferential tax treatment of hedge fund managers, introduced by Congressman Sander Levin (D-MI) on June 22, 2007.

H.R. 2796, the "Generate Retirement Ownership Through Long-Term Holding Act of 2007," to amend the tax code to allow individuals to defer recognition of reinvested capital gains distributions from mutual funds, introduced by Congressman Paul Ryan (R-WI) on June 20th, 2007.

S. 1624, a bill to change the preferential treatment of hedge funds which become publicly traded partnerships, introduced by Senator Max Baucus (D-MT) on June 14th, 2007.

H.R. 2683, the "Pension Security Act of 2007," requiring the disclosure of hedge fund investments in defined benefit pension plans, introduced by Congressman Michael Castle (R-DE) on June 12th, 2007.

S. 1402, the "Hedge Fund Registration Act of 2007," requiring SEC registration of hedge funds, introduced by Senator Charles Grassley (R-IA) on May 15th, 2007.

H.R. 397, a bill to amend the tax code to allow individuals to defer recognition of reinvested capital gains distributions from mutual funds, by Congressman Jim Saxton (R-NJ) on Jan. 10, 2007.

109th Congress

H.R. 4618, the "Compliance, Examinations, and Inspections Restructuring Act of 2005," by Congressman Fossella (R-NY) (introduced December 17, 2005)

S. 1037, the "Mutual Fund Transparency Act of 2005," by Senator Akaka (D-HI) (introduced May 16, 2005)

H.R. 1500, the "Investment Tax Simplification Act of 2005," by Congressman Drier (R-CA) (introduced April 6, 2005)

H.R. 809, which would make permanent the individual income tax rates for capital gains and dividends, by Congressman Cantor (R-VA) (introduced February 15, 2005)

H.R. 196,which would allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies, by Congressman Saxton (R-NJ) (introduced January 5, 2005)

108th Congress

In the 108th Congress, the House Financial Services Committee reported legislation to enhance the federal regulatory requirements for mutual funds. This legislation, H.R. 2420, was introduced by Representative Richard Baker (R-LA), the Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance and Government-Sponsored Events, on June 11, 2003. The bill subsequently was reintroduced with House Financial Services Committee Chairman Michael Oxley (R-OH), the Oxley substitute, and passed the House Financial Services Committee on July 23, 2003 . The House of Representatives passed an amended version of H.R. 2420 on November 19, 2003.

The Coalition supported this Baker/Oxley legislation. The Coalition also supported amendments to this legislation to improve its effectiveness for mutual fund investors. For example, the Coalition supports: (1) more disclosure of the estimated amount of operating expenses borne by each shareholder; (2) more disclosure of the portfolio transaction costs associated with mutual fund brokerage activities; (3) full disclosure of all payments involved in the sale or distribution of mutual fund shares; (4) full disclosure of shareholder identity and transaction information to mutual funds; and (5) enhanced investor access to mutual fund policies and practices described in the Statement of Additional Information.

In the Senate, Senators Peter Fitzgerald (R-IL), Carl Levin (D-MI) and Susan Collins (R-ME) introduced a mutual fund reform bill that incorporated almost all the reforms advocated by CMFI, S. 2059, the Mutual Fund Reform Act of 2004. This bill is by far the most comprehensive mutual fund bill which has been introduced. Please click here for CMFI's letter of endorsement of this legislation. In the House of Representatives, Congressman Paul Gillmor (R-OH) introduced H.R. 4505, the companion legislation to Senator Fitzgerald's bill.

Additionally, several other Senators introduced legislation in response to the growing problems have been uncovered in the mutual funds industry. Senator Daniel Akaka (D-HI) has introduced similar legislation to H.R. 2420 in the U.S. Senate, S. 1822, on November 5, 2003. Senator John Kerry (D-MA) introduced S. 1958, on November 25, 2003. Senators Jon Corzine (D-NJ) and Christopher Dodd (D-CT) introduced S. 1971, also on November 25, 2003.

A number of hearings have been held since 2003 that explain the many complexities facing mutual funds and investors. Please click here for testimony from hearings held on the Mutual Fund industry since March 2003.

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