While well intentioned, the imposition of inconsistent state requirements would be extremely confusing and would be burdensome for companies, such as mutual funds, that do business nationwide. This is not the right result for consumers or companies. Any new federal privacy legislation must harmonize and make uniform inconsistent requirements of state law. In short, the mutual fund industry supports a balanced approach that ensures shareholder control over personal information, without hampering efficient provision of services that shareholders have come to expect. The third area that I will discuss is foreign regulation.
Globalization is a profoundly important phenomenon.
Foreign regulation can have an important impact on the shareholders of U.S. mutual funds that invest overseas. As international investing by our industry increases, it is incumbent on us to work to ensure that foreign regulation works to the benefit of our shareholders. Each foreign market and legal system reflects its own unique cultural, political, and economic landscape. What works well for one country may not be wise policy for another. Nevertheless, when a foreign law or policy puts our shareholders at an unfair disadvantage, it is our obligation to work for change.