As a result of trading and fee assignment abuses by the mutual fund industry, the SEC established new rules regarding fund governance and conflicts of interest in 2004 and 2005.

Question

Quizplus · Accepted Answer

The statement correctly describes the SEC's actions following trading and fee assignment abuses by the mutual fund industry. In 2004, the SEC established new rules requiring mutual funds to have independent chairpersons and a minimum number of independent directors. In 2005, the SEC adopted new rules requiring greater disclosure of fund fees and conflicts of interest.

As a Result of Trading and Fee Assignment Abuses by the Mutual