Dear Senator/Congressman _____:

I am an individual investor who is concerned about mutual fund regulation by the Securities and Exchange Commission (SEC).

Since the mutual fund scandals of 2003-2004, the SEC has issued a number of new rules to fix some of the regulatory loopholes that contributed to the scandals. However, the SEC has not finished its work, with new regulations that adequately protect individual mutual fund investors. For example:

--Broker-dealers are still permitted to charge fees for shareholder servicing and related administrative tasks that are unnecessary and only add to investor costs. CMFI estimates that these overcharges exceed $7 billion a year for individual investors.

--Broker-dealers and other financial intermediaries are able to move mutual fund accounts onto their accounting platforms in a manner that hides transaction information from fund compliance personnel, making it impossible for mutual funds to enforce their short-term trading and other prospectus policies in a uniform manner. CMFI believes that broker-dealers should provide mutual funds with full transparency into these "hidden" accounts.

--Large broker-dealers are able to use their market power with mutual funds to dictate the business arrangements for distributing fund shares. CMFI believes that the cost of distributing mutual fund shares through broker-dealers could be significantly reduced by requiring competitive bidding and more transparency, regarding the fees and payments which are being demanded from funds and their investment advisers.

After the recent financial crisis, many individual investors no longer trust the capital markets for their savings. While the SEC can't regulate the amount of volatility in the stock and bond markets, it can improve investor protections for mutual funds, as one step towards restoring faith in these investments by the average investor.

Thank you.
YOUR NAME AND CONTACT INFORMATION

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