Taking Sides: No need for an SRO - yet.(Opinion)

Investment News, April, 2004

The mutual fund industry doesn't need a self-regulatory organization - yet.

In that, Sen. Paul Sarbanes, D-Md., is correct. As reported in this issue (see page 16), Mr. Sarbanes sees no pressing need for a mutual fund industry SRO "at present.''

The recent mutual fund scandal was damaging to investors and to the industry. Executives at some of the largest mutual fund companies either were actively involved in, or averted their eyes from, practices that breached fund policies or regulations and harmed investors. Otherwise, they were asleep at the switch.

But executives at other top mutual fund companies - such as Fidelity Investments, The Vanguard Group Inc. and T. Rowe Price Group Inc., and at many smaller companies - kept their focus...