Washington (April 5, 2004) -- Treasury Secretary John Snow told a financial lobbying group that the Bush administration is in support of overhauling the $7.5 trillion mutual fund industry and would work with fund companies on possible reform strategies.

Speaking to the Financial Services Roundtable in Scottsdale, Ariz., Snow said that the Bush administration “Supports taking strong action when harm is done to investors, but believes that care must be taken to preserve the valuable benefits and flexibility that mutual funds provide.”

Snow was referring to the action of some lawmakers who have requested that the Securities and Exchange Commission retreat from its previous proposal of a "hard 4 p.m. close," which proponents maintain would end the practice of illegal late trading.

Last week, Reps. Michael Oxley, R-Ohio, and Richard Baker, R-La., urged SEC chair William Donaldson "to consider the unintended consequences the hard 4:00 close rule will have on mutual fund consumers."

-- WebCPA staff

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