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FINRA

 

 

FOR RELEASE:
CONTACTS:
Thursday, May 27, 2004
Nancy Condon 202-728-8379
Herb Perone 202-728-8464

 


 

NASD Names 20 To Mutual Fund Task Force

Washington, D.C.—NASD Chairman and CEO Robert Glauber today announced the appointment of 20 individuals to NASD's new Mutual Fund Task Force, whose mission will be to consider ways to bring greater transparency to mutual fund costs and distribution arrangements. The task force members, who represent a cross-section of the broker-dealer and mutual fund communities, will meet for the first time on June 23, 2004.

 

Named to serve on the task force are:

  • William C. Alsover, Jr., Chairman, Centennial Securities Corporation, Inc., Grand Rapids MI;
  • John J. Brennan, Chairman and CEO, The Vanguard Group, Malvern, PA;
  • Martin L. Flanagan, President and Co-CEO, Franklin Resources, Inc., San Mateo, CA;
  • Robert Graham, Vice Chairman, AMVESCAP PLC, Houston, TX;
  • Paul G. Haaga, Jr., Executive Vice President, Capital Research and Management Co., Los Angeles, CA;
  • David B. Jones, Senior Vice President, Product Strategy & Communications, Fidelity Management & Research Co., Boston, MA;
  • Ronald J. Kessler, Vice Chairman and Executive Vice President, A.G. Edwards & Sons, Inc., St. Louis, MO;
  • Thomas P. Lemke, Partner, Morgan, Lewis & Bockius LLP, Washington, DC;
  • Jeffrey M. Lyons, Executive Vice President, Asset Management Products and Services, Charles Schwab & Co., Inc., San Francisco, CA;
  • William M. Lyons, President and CEO, American Century Companies, Inc., Kansas City, MO;
  • Mark D. Madoff, Co-Director of Trading, Bernard L. Madoff Investment Securities LLC, New York, NY;
  • Robert McCann, Executive Vice President and Vice Chairman, Wealth Management Group, Merrill Lynch, Pierce, Fenner & Smith Inc., New York, NY;
  • Robert C. Pozen, Chairman, MFS Investment Management, Boston, MA;
  • James S. Riepe, Vice Chairman, T. Rowe Price Group, Inc., Baltimore, MD;
  • Todd Robinson, Chairman and CEO, Linsco Private Ledger Financial Services, Boston, MA;
  • John H. Schaefer, President and Chief Operating Officer, Individual Investor Group, Morgan Stanley, Purchase, NY;
  • Timothy C. Scheve, President and CEO, Legg Mason Wood Walker, Inc., Baltimore, MD;
  • Brian Shea, Chief Operating Officer, Pershing, LLC, Jersey City, NJ;
  • Erik Sirri, Professor, Finance Division, Babson College, Wellesley, MA, and
  • Thomas Streiff, Senior Vice President, Director of Investment Solutions, UBS Financial Services, Inc., Weehawken, NJ.

The task force is the product of discussions between the Securities and Exchange Commission (SEC) and NASD staffs, building on the NASD's previous work on the Breakpoints and Omnibus Task Forces. The views of the Task Force will help to inform SEC rule proposals and requests for comment regarding mutual fund cost disclosure and distribution arrangements.

 

The work of the Mutual Fund Task Force will proceed in two phases to provide timely input to the SEC's rulemaking process. In the first, it will consider mutual fund portfolio transaction costs - including directed brokerage arrangements, soft dollars and disclosure. It's expected the task force will report back to the SEC on these issues in the next several months.

 

In the second phase, task force members will focus on distribution arrangements, including 12b-1 fees and revenue sharing. Phase two will include a comprehensive view of mutual fund distribution and will require a longer time commitment than phase one.

 

NASD is the leading private-sector provider of financial regulatory services, dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business—from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and registered firms. For more information, please visit our Web Site at www.nasd.com.