Patrick McHenryChairman

Washington, June 23, 2011 - WASHINGTON – The Subcommittee on Capital Markets and Government Sponsored Enterprises will conduct a hearing on the state of the mutual fund industry on Friday, June 24.  It will be the first Financial Services Committee oversight hearing focusing on the mutual fund industry since 2005.

The Subcommittee hearing, entitled “Oversight of the Mutual Fund Industry: Ensuring Market Stability and Investor Confidence,” will assess the status of and outlook for the mutual fund industry.  The hearing will also examine the impact of the financial crisis on mutual funds, as well as regulatory and market reforms proposed or adopted following the financial crisis.

Financial Services Committee Chairman Spencer Bachus said, “The Committee has not held a mutual fund industry oversight hearing in more than six years, so we are long overdue for a review of this vitally important $12 trillion U.S. market.  Since our last oversight hearing in 2005, U.S. capital markets and mutual funds have experienced tremendous growth and structural change, as well as a financial crisis that shook investor confidence to its core.   Therefore, it is imperative that we have sound and cost-effective regulation of this industry.  Funds need to be transparent, potential conflicts of interest and risks must be disclosed and managed, and the interests of fund shareholders must take priority.”

Subcommittee Chairman Scott Garrett said, “This hearing will be a good opportunity to discuss a number of issues currently facing the industry that impact both investors and, potentially, taxpayers.  In particular, I’m interested in having a good discussion on proposals to reinforce the long-term stability of money market mutual funds as well as whether asset management firms should be considered as systemically important financial institutions by the Financial Stability Oversight Council.”

The hearing will take place at 9:30 a.m. in room 2128 Rayburn.