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News and Press Releases |
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HEADLINE:
Oxley Urges Independent Chairman For Mutual Fund Families
By: Staff Writer
WebCPA.com. May 28, 2004
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EXCERPT: Rep. Michael Oxley, R-Ohio, chairman of the House Financial Services Committee and co-author of the Sarbanes-Oxley Act, has released a report showing that roughly 85 percent of the mutual fund companies implicated in market-timing and late-day-trading scandals had management-affiliated chairmen at the time of the alleged violations. According to the report, there have been a total of 19 mutual fund families implicated in market-timing and late-day-trading scandals with 24 chairmen serving during the periods of the alleged or admitted violations. Of that number, 16 had non-independent chairmen overseeing at least some, if not all of the implicated funds. The companies in the study included fund families subject to settlements, charges, or allegations of market-timing and late-day trading. Fourteen were non-bank based, while five were bank-based. All 14 of the non-bank-based fund families implicated in the scandals had management-affiliated chairmen. "Implicated funds are extremely likely to have management-affiliated chairmen," Oxley said.
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