PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S14040-14041)
Congressional Research Service
Version 00 · Introduced in Senate · Nov 5, 2003
Mutual Fund Transparency Act of 2003 - Amends the Securities Exchange Act of 1934 to require brokers to disclose in writing to purchasers of mutual funds the amount of any compensation received or to be received by the broker in connection with the transaction.
Prohibits such disclosure from appearing exclusively in either a registration statement or prospectus of an open-end company, or any other filing with the Securities and Exchange Commission (SEC).
Amends the Investment Company Act of 1940 to direct the SEC to require, by rule, that brokerage commissions paid by an open-end company be included in any disclosure of fees and expenses payable by a holder of company securities in a registration statement or other filing with the SEC, including the calculation of expense ratios.
Showing the opening paragraphs of the official summary.
Reduces from 60 percent to 25 percent the number of interested persons who may serve on the board of directors of a registered investment company. Prohibits any interested person from serving as board chairman.
Prohibits an interested person from serving on such board unless the person has been: (1) approved or elected by the shareholders at least once every five years; and (2) found, on an annual basis, not to have any material business or familial relationship with the registered investment company, a significant service provider to the company, or any entity controlling, controlled by, or under common control with such service provider that is likely to impair his or her independence. Declares that no action taken by the board of directors of a registered investment company may require the vote of an interested director.
Requires the members of the board of directors who are not interested persons to establish a committee composed solely of such members to: (1) select nominees for election to the board; and (2) adopt qualification standards for such nominees.
Directs the SEC to study and report to specified congressional committees on: (1) whether the best interests of investors in mutual funds would be served by creation of a Mutual Fund Oversight Board; and (2) financial literacy among mutual fund investors.
Directs the SEC to prescribe rules for disclosure by a registered investment company of the compensation structure for individuals employed by the investment adviser to manage the company portfolio, and the ownership interest of such individuals in the securities of the registered investment company.
People & committees
Sen. Akaka, Daniel K. [D-HI] · D–HI
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S14040-14041)
Sponsor introductory remarks on measure. (CR S14038-14040)
Introduced in Senate
Primary sources
Text links open the official source. We currently store references to these documents.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Aug 18, 2025. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze S.1822 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine S.1822 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine S.1822 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine S.1822 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.