“The CFTC in its rulemaking process did not remotely justify such regulatory excess,” ICI president and CEO Paul Schott Stevens, said in the press release. “The rule will impose significant compliance costs on mutual fund advisers and, ultimately, these costs will come out of shareholders’ pockets. Additional cost for no benefit to investors – that’s the wrong outcome.”
“The new rule creates confusion, not clarity, by subjecting mutual funds to redundant, overlapping, and unnecessary regulatory requirements,”David Hirschmann, president and CEO of the U.S. Chamber’s Center for Capital Markets Competitiveness, added in the press release. “The CFTC completely ignored its statutory duty to evaluate the costs this unnecessary regulation will undoubtedly impose on the economy.”
“The agency imposed burdensome new requirements without showing that they are necessary, or even that they will be helpful to investors,” Eugene Scalia, partner at Gibson, Dunn & Crutcher, LLP, who is representing ICI and the Chamber, said. “What’s more, just a few years ago the CFTC determined that similar requirements had adverse effects on the markets.”
For more information on the mutual fund industry, visit our mutual funds category.
Max Chen contributed to this article.