SEC fund reforms may cost investors

In a new TowerGroup consultancy report, Regulatory and Legislative Efforts to Heal the Ailing Mutual Fund Industry: Will the Medicine Kill the Patient?, senior analyst Gavin Little-Gill argues that new and proposed regulations are driving up funds' selling and servicing costs for retail investment products, and he fully expects those costs to be passed on to mutual fund investors themselves.

Over the past several months, the SEC has focused its reform initiatives on five issues:

• Failure to a