Prospectuses would have to note that the funds have ethics codes and disclose whether they permit fund managers to buy stocks that are owned by their funds. Also, fund managers would have to report their holdings when they join a fund. It sounds good but in fact would do precious little. To begin with, the SEC expects too much from fund boards, which are hardly the Ralph Naders of investing and don't even approach their corporate cousins in activism. The other ''new'' proposal, which requires fund managers to report their holdings when they start working, is really old hat.
Most funds already have that requirement.
No, the status quo needs to be changed, not ratified. Fund customers have a right to know if fund managers own the same stocks their funds buy. Fund customers should not have to go to the SEC to obtain such vital information. The SEC won't have to worry about disclosure at all if it simply bites the bullet and severely restricts personal trading. But strict limits are needed for the vast majority of fund managers, and the SEC should set them.