Mark Udall: “I support this bill as a necessary first step toward greater protection for the millions of Americans who have invested…”

“I support this bill as a necessary first step toward greater protection for the millions of Americans who have invested in mutual funds. Anyone who reads the daily newspapers is aware of the need for greater vigilance by the Securities and Exchange Commission to prevent continued practices by fund managers and others that enrich favored individuals and groups at the expense of the majority of mutual-fund shareholders. I do understand that there are concerns about some parts of the bill, including a provision that would authorize an increase in the fees charged for redemption of fund shares, presumably as a way to reduce the likelihood of some transactions that would have adverse effects on other shareholders. I have heard from people in Colorado who think that the costs to shareholders of such fee increases would outweigh its benefits, and I think they make some good points in support of that view. However, my understanding is that while the bill would authorize such fee increases, it does not mandate them. And, on balance, I think the potentially adverse effects of this provision are outweighed by the desirable changes to current law that would be made by other parts of the bill. So, I will vote for the bill as a necessary first step to respond to a real and urgent problem. My hope is that it will be further refined as the legislative process proceeds in the other body and possibly in conference.”