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Chamber of Commerce, ICI sue CFTC over mutual fund registration rule

Paul Stevens

The Chamber of Commerce and the Investment Company Institute filed suit against the Commodity Futures Trading Commission on Wednesday, alleging that the CFTC did not conduct a thorough cost-benefit analysis of a mutual fund registration rule.

The rule in question would require mutual funds with commodities through various derivatives and futures contracts to register with the CFTC. Both the Chamber and the ICI claim that the regulation is a duplicative measure, as mutual funds are already regulated by the SEC, according to Pensions & Investments.

“Mutual funds are already one of the most regulated entities in the financial industry,” Paul Stevens, the president and CEO of ICI, said, Pensions & Investments reports. “The CFTC has not justified why this extra regulatory burden is necessary. It will create additional costs with no benefits to shareholders. Ultimately, the cost will come out of shareholder pockets.”

The CFTC said at the time of the ruling that the agency plans to target only a few “future-only investment options” that should have been put under its jurisdiction to begin with.

CFTC Commissioner Jill E. Sommers said in February that the commission is trying to “assess the risk posed by such investment vehicles in the derivatives markets and the financial system generally,” according to Pension & Investments.

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