SEC Furthers Tool for Investors, While Frank Plans Hearings

SEC Chairman Christopher Cox told the mutual fund industry at the Investment Company Institute annual meeting in May that the Commission is working on an interactive system using the computer language called XBRL that's designed to give investors the tools they need to more easily compare mutual funds.

Cox also said the SEC plans to finalize soon the Commission's proposed rule on interactive data–Extension of Interactive Data Voluntary Reporting Program on the Edgar System to Include Mutual Fund Risk/Return Summary Information. He also noted that mutual funds should consider using interactive data in disclosures, and said the SEC also plans to let consumers choose whether they want to receive mutual fund disclosures in paper format or online.

Meanwhile, Rep. Barney Frank (D-Massachusetts), chairman of the House Financial Services Committee, will hold hearings to study the SEC starting this month. All five commissioners and Cox have agreed to testify, according to Heather Wong, press secretary for the committee. "There have been concerns that various people have voiced," Frank told Bloomberg. "There is no point in prejudging, but obviously there are enough questions in the air that we are holding a hearing." Wong says the hearings will be general oversight hearings, and focus on issues like enforcement as well as Sarbanes Oxley.