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ICI APPLAUDS MODERNIZATION OF MUTUAL FUND REGULATION

WASHINGTON, March 8 /PRNewswire/ -- The Investment Company Institute applauds the House Telecommunications and Finance subcommittee's unanimous and bipartisan approval yesterday of securities legislation that reforms current federal and state mutual fund regulation in the interest of investors.

The bill provides for important modernization in the regulation of mutual funds, which will benefit both investors and fund companies by removing inefficiencies, reducing costs and promoting the development of innovative products and services. A key provision of the bill, introduced by subcommittee Chairman Rep. Jack Fields and approved by a 25-0 vote, provides federal regulators with exclusive jurisdiction over the operation of mutual funds and the review of fund prospectuses and advertising. Under the bill, H.R. 3005, "The Securities Amendments of 1996," state regulators would retain their authority to investigate and prosecute sales practice abuse and fraud, require notice filings and collect fees for mutual funds sold in their states.

"We are extremely pleased that the leadership of subcommittee Chairman Jack Fields and ranking minority member Edward Markey produced a bill that benefits federal and state regulators, the industry, and above all, mutual fund shareholders," said Matthew P. Fink, President of the Institute, which is the national association of the mutual fund industry. Mr. Fink added, "We are heartened by the subcommittee's unanimous and bipartisan approval of this legislation that eliminates duplicative and unnecessary regulation while maintaining effective investor protection. We will continue to work vigorously to see it enacted into law this year."
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/CONTACT: Elizabeth Tower, 202-326-5860 or Chris Wloszczyna, 202-326-5889, both of Investment Company Institute/

CO: Investment Company Institute ST: District of Columbia IN: FIN SU: LEG

JA-ER -- DCF022 -- 1673 03/08/96 15:10 EST
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Publication:PR Newswire
Date:Mar 8, 1996
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