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Thursday, March 13, 2003 Page: 1C
New funds rules possible
Lawmakers and some officials inside the mutual fund industry on Wednesday
criticized rising fees and fund practices, and a House panel wants federal
regulators to consider new restrictions.
With investor confidence shaken by last year’s wave of corporate accounting
scandals, lawmakers and the Securities and Exchange Commission are focusing on
mutual funds – with 93 million Americans invested in U.S. stock funds – for
possible tighter regulation.
The panel plans to send a letter to the SEC asking the agency to develop
recommendations for possible new industry rules.
Fees paid by investors in mutual funds are rising despite intense
competition in the industry, and some fees are hidden so that it’s difficult
to compare funds.
The latest evidence: a new report by the General Accounting Office that
showed that average fees for large stock funds have increased, while fees
charged by major bond funds have declined.
A recent inspection by the SEC, the New York Stock Exchange and the
National Association of Securities Dealers found that brokers – apparently
inadvertently – did not give large-scale investors the discounts they were
owed in nearly a third of transactions.
As a result of the “sweep” inspection, about 2,000 brokerage firms are
being required to review their transactions in mutual funds.
Child car seats recalled
Graco Children’s Products Inc. is recalling 650,000 stand-alone SnugRide
infant car seats that might be missing hardware intended to attach the seat to
its base.
If the components are missing or misassembled, the carrier might detach
during a sudden stop.
Customers with carriers made in the United States between March 1, 2002,
and March 6, 2003, should check the company Web site –
http://www.gracobaby.com – or call (866) 473-0163 to determine if the hardware
is missing, and if so, how to obtain a replacement seat.
The carrier can be used in the car without the base, following instructions
in the instruction manual or on the Web site.
Model numbers affected include 8402, 8412, 8442, 8442L, 8443, 8443L, 8444,
8444L, 8446, 8446L, 8447, 8447L, 8448, 8448L, 8457, 8458, 8459, 8601, 8463,
8464, 8470, 8471, 8478, C844342 and 841203. The model number and date of
manufacture are on a label adhered to the car seat or base.
The recall didn’t include SnugRide car seats sold as part of a car seat,
infant carrier and stroller combination marketed as a “Travel System” or
standalone units made in China, the company said.
Medical error bill moves
The House on Wednesday passed a bill to create a voluntary system for
tracking medical errors, promising confidentiality to hospitals and doctors
and assurances the information will not go to lawyers for use in malpractice
suits.
The measure passed in a 418-6 vote. Today, the House is to consider
separate legislation that would limit medical liability awards to patients.
The bill establishes a voluntary error reporting system. The Health and
Human Services secretary would certify a number of public and private
organizations as patient safety organizations. Those groups will analyze data
on medical errors, determine their causes and develop information to providers
to help them implement changes that will improve patient safety.
The information provided to the database cannot be used in malpractice
suits, although patients can still seek to get the information from a hospital
and other sources.
The Senate has not acted on a similar measure. Senate Democrats are likely
to try to ensure that patients can get the information from other sources.
Some lawmakers also would like to see grants and other incentives to make sure
that the recommendations made by the patient safety organizations are put in
place.
McDonald’s sags again
McDonald’s Corp. reported lower comparable sales Wednesday for a 12th
straight month, continuing its worst-ever slump despite its recent management
overhaul.
Worldwide sales at its restaurants open at least 13 months dropped a
worse-than-expected 4.7 percent in February.
The news sent McDonald’s stock skidding to the latest in a series of
10-year lows. The shares, which have lost half their value in the past seven
months, fell 9 cents to $12.38 on the New York Stock Exchange – their lowest
closing price since July 1993.
The fast-food chain said the sluggish economies in the United States and
Europe, its top two worldwide markets, and severe winter weather contributed
to the latest decline.
Comparable, or same-store sales – a key industry measure of performance –
were down 4.4 percent in the United States and 3.9 percent in Europe excluding
changes in foreign currency rates.
Total systemwide sales for February rose 4 percent to $3.1 billion,
although without the beneficial effect of changed currencies they would have
been down 1 percent.