Mutual Fund Reform May Elude Congress

Representatives of the mutual fund and investment services industry appear before the Senate Banking Committee on Wednesday in a full day of hearings on reshaping the scandal-plagued industry.

Issues on the table include the proposed elimination of soft-dollar payments for research, an end to directed brokerage commissions, reform of fee structures and increased disclosure requirements designed to protect investors.

Politics may derail the passage of a blanket reform law, despite the clamor since last autumn's investigation by New York State Attorney General Elliot Spitzer, which uncovered widespread industry abuses, including market-timing and late trading. ...