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T. ROWE PRICE MANAGING DIRECTOR URGES CONGRESS TO INCREASE SEC FUNDING FOR MUTUAL FUND REGULATION

 WASHINGTON, May 20 /PRNewswire/ -- James S. Riepe, managing director of T. Rowe Price Associates, Inc., urged Congress today to support increased funding for the SEC to ensure adequate protection of mutual fund investors and accommodate the tremendous growth of the fund industry in recent years.
 In testimony before the Securities Subcommittee of the Senate Committee on Banking, Housing and Urban Affairs, he presented his views on major issues regarding the mutual fund industry that he believes should be priorities for Congress, the SEC and the administration. Riepe, former chairman of the Investment Company Institute, is president of T. Rowe Price Investment Services, which oversees $28 billion in mutual fund assets.
 "The SEC's diligent and effective regulation of the mutual fund industry has contributed to a high level of investor confidence in the integrity of the industry," Riepe said. "However, the highly effective regulation that the mutual fund industry has experienced to date cannot be assured in the future if funding for the SEC (and the Division of Investment Management in particular) does not remain adequate."
 Riepe added that "an examination of the growth of the mutual fund industry, as compared to the growth of the SEC's resources devoted to regulation of the industry, illustrates that there may be cause for concern about the SEC's ability to provide effective oversight in the coming years.
 "From 1982 to 1992, the number of registered investment companies increased by 133 percent and assets under management increased by 344 percent. However, the staff of the SEC's Division of Investment Management grew by only 74 percent. This gap in growth exists despite the fact that mutual funds pay substantial registration fees to the SEC, but only a portion is allocated to regulate the mutual fund industry."
 Riepe also strongly supported the SEC staff's recommendation to repeal the exemption under the Securities Act for bank collective funds and insurance company separate accounts sold to participants in defined contribution plans. Riepe said that "this change would ensure that participants in such plans receive a prospectus containing the information necessary to make informed investment decisions with respect to their retirement savings."
 Riepe also supported the adoption of the SEC's proposal to permit the purchase of mutual fund shares from a summary prospectus. "The summary prospectus would provide a more focused presentation of all information that an investor needs to know before purchasing mutual fund shares."
 He added that the summary prospectus will help investors in comparing and selecting mutual funds and as a result provide a better means to educate investors.
 Finally, he also urged that the federal securities laws be modernized to take into account the entry of commercial banks into the mutual fund business.
 The full text of Riepe's testimony can be obtained by calling 410-547-2124.
 T. Rowe Price manages $45 billion for 2.6 million investor accounts and serves as investment adviser to the T. Rowe Price family of no-load mutual funds and to institutional and individual clients.
 -0- 5/20/93
 /CONTACT: Steven E. Norwitz of T. Rowe Price Associates, 410-547-2124/


CO: T. Rowe Price Associates, Inc. ST: District of Columbia IN: FIN SU:

JM-MK -- PH020 -- 0753 05/20/93 11:55 EDT
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Publication:PR Newswire
Date:May 20, 1993
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