Bill seeks disclosure of brokers' earnings
By David Butts
Advertiser Staff Writer
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The bill, co-authored by Sen. Peter Fitzgerald, R-Ill., is in response to the recent scandals that have tarnished the reputation of mutual funds, traditionally viewed as a safe, conservative investment.
Akaka and Fitzgerald are members of the Senate Governmental Affairs subcommittee, which is examining the mutual fund scandal and the regulators' response.
"This (bill) helps Hawai'i consumers as much as it helps consumers across the nation," said Akaka's press secretary, Paul Cardus.
Many investors are unaware of how much money their broker and the mutual fund company make when they put savings into a fund, even though the information is available in the mutual fund prospectus.
"If there is a way to simplify the process, I'm in favor of it," said Jerry Schwartz, a Honolulu investment adviser with 26 years experience.
Schwartz said any new disclosure law needs to be uniform, clear and not burden the brokers with too much additional paperwork.
"We have to have a lot of clarity on what is being disclosed," he said.
Reach David Butts at dbutts@honoluluadvertiser.com or 535-2453.
