S. 1964: Mutual Fund Transparency Act of 2009

111th Congress · introduced 2009-10-28 · Finance and Financial Sector · Latest: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S10856-10857)

federal

Follow this bill, step by step

Where it came from: introduced 2009-10-28 · official record
Who proposed it: Sen. Akaka, Daniel K. [D-HI] · what a sponsor is
What happened next: no floor votes in our records yet. Why?
Where it stands now: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S10856-10857) Not final yet: this can still change. We check for updates every day.
If it becomes law and spends money: follow the money to money laws, then agencies and contracts and grants.

What does this mean?

Official title

Mutual Fund Transparency Act of 2009

Plain summary

Mutual Fund Transparency Act of 2009 - Amends the Securities Exchange Act of 1934 and the Investment Company Act of 1940 to require brokers and dealers of mutual funds to disclose in writing the related commissions they receive to purchasers of shares of any registered open-end or closed-end company or any interest in a registered unit investment trust or municipal securities used for education savings plans. Amends the Investment Company Act of 1940 to: (1) reduce from 60% to 25% the membership of the board of directors of a mutual fund that may be composed of "interested persons"; (2) prohibit such board from having an interested person as chairman; (3) prohibit requiring the vote of a director who is an "interested person" of the mutual company; and (4) require a mutual fund company to have a committee composed solely of "non-interested persons" responsible for selecting nominees for election to the board and for adopting qualification standards for such nominations. Requires the Securities and Exchange Commission (SEC) to issue final rules: (1) redefining the term "significant service provider" to include the investment adviser and principal underwriter of a mutual fund; and (2) declaring that brokers and dealers have a certain fiduciary duty in providing investment advice to retail clients, including the duty to act solely in the best interest of the client without regard to the financial or other interest of the broker or dealer. Requires the SEC to study and report to certain congressional committees on designated topics, including: (1) the level of financial literacy among purchasers of open-end companies; (2) information that investors need to make sound financial decisions prior to share purchases; and (3) methods to increase transparency of expenses and potential conflicts of interest in transactions involving shares of open-end companies. Directs the Comptroller General to study and report to certain congressional committees on mutual fund advertising, including: (1) current marketing sales practices, especially the use of unsustainable past performance data; and (2) recommendations to improve investor protections in mutual fund advertising.

Congressional Research Service summary (Introduced in Senate), quoted unchanged (nonpartisan). Read the source.

What a vote does

A “Yea” vote

If it passes both chambers and is signed, it becomes law.

A “Nay” vote

If it is not passed, current law stays as it is.

PSI Sci description of the legislative step (not an opinion).

What does this mean? (plain words)

Official text

Mutual Fund Transparency Act of 2009

Source: Congressional Research Service summary (Introduced in Senate)

AI explanation – may be wrong, check the official text

No AI explanation yet. It takes up to a minute to write and is then saved for everyone.

Limited to a few requests an hour per person.

The strongest published arguments

Arguments for (supporters)

Needs sources: no published arguments on this side yet. We only show items backed by a published source. Suggest one.

Arguments against (opponents)

Needs sources: no published arguments on this side yet. We only show items backed by a published source. Suggest one.

Alternatives

Needs sources: no published alternatives yet (for example a different bill, a law instead of an amendment, or keeping current law). We only show items backed by a published source. Suggest one.

How did my representative vote? · This bill's floor votes

Officials and money

Sponsor: Sen. Akaka, Daniel K. [D-HI] · 0 cosponsors

Cost estimate: No cost estimate published yet.

No linked floor roll calls in our collected records yet. This does not mean the bill has never had a vote. Check the official bill history.

Words on this page, explained (2)

Rulemaking: The process agencies use to write regulations that carry out laws passed by Congress or a legislature. Usually an agency publishes a proposed rule, takes public comments, then publishes a final rule.
Securities: Financial investments that can be bought and sold, such as stocks and bonds.

Plain meanings written from linked sources. All words.

Sources

Congressional Research Service summary (Introduced in Senate)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-111s1964.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/111/s>

Record fed-us-cong111-s1964 · catalog fed-us-congress-bills-cong111 · updated 2026-11-15 by psicol fed-bills-cong111