Printer Friendly

MUTUAL FUND ASSOCIATION SUPPORTS BILL AIMED AT PROMOTING FAIRNESS IN WORLD FINANCIAL SERVICES

 WASHINGTON, Oct. 26 /PRNewswire/ -- A bill that would give the U.S. government the authority to impose sanctions against foreign countries that discriminate against U.S. investment advisers and mutual funds received the strong support of the Investment Company Institute (ICI) today in testimony before the Senate Committee on Banking, Housing and Urban Affairs. The institute is the national association of the mutual fund industry.
 Institute President Matthew P. Fink told committee members that U.S. investment advisers are either severely limited or totally barred from financial markets in countries like Japan, Korea and Taiwan -- countries that enjoy unrestricted access to the U.S. market. Fink said that this competitive inequity should end.
 "Our government should not be obligated to grant unconditional national treatment and market access to foreign financial institutions without regard to the treatment of U.S. institutions in the home country of such foreign institutions," Fink told committee members.
 Foreign investment advisers are granted unconditional national treatment in the United States, Fink explained. Once they have registered with the Securities and Exchange Commission and as long as they comply with U.S. securities laws, these foreign advisers are allowed unrestricted access to U.S. mutual fund and investment advisory markets. By contrast, mutual fund advisory markets in Japan, Korea and Taiwan are either severely restricted or closed completely to foreign entrants.
 The bill under consideration, S.1527, would enable the Securities and Exchange Commission to deny investment adviser registration to any person or entity from a country that, according to the Treasury Department, discriminates against U.S. investment advisers. In addition, the SEC would be authorized to prohibit the acquisition of a U.S.-registered adviser by an entity from a foreign country that has been found to discriminate against U.S. advisers.
 The bill "would be an important first step in ensuring that U.S. financial firms are treated fairly," Fink said.
 The institute's membership includes more than 4,300 U.S. mutual funds, with assets over $1.85 trillion and about 38 million shareholders.
 -0- 10/26/93
 /CONTACT: Malin Jennings, 202-955-8415, or Betty Hart, 202-955-3532, both of the Investment Company Institute/


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

KD-DC -- DC022 -- 6839 10/26/93 13:54 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 26, 1993
Words:378
Previous Article:UNDERWRITERS EXERCISE OPTION TO PURCHASE ADDITIONAL SHARES OF COLONIAL PROPERTIES TRUST COMMON SHARES
Next Article:AMERITECH STRENGTHENS WORLD'S LARGEST TALKING YELLOW PAGES SERVICE WITH EQUIPMENT PURCHASE FROM BRITE VOICE SYSTEMS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters