Securities markets that improve the settlement process inevitably will attract greater interest by U.S. mutual funds and other institutional investors. The second area where investors would benefit from the adoption of U.S.-type principles involves open markets. An important reason for the success of the U.S. mutual fund industry is the absence of barriers to entry. This has fostered a highly competitive environment that benefits investors. While the U.S. market is completely open, many foreign markets are not.
Some countries restrict foreign participation.
Others impose high capital or other requirements designed to limit competition. Requirements that limit competition are misguided. Having a market that is open to new entrants encourages the constant development of new products and services that meet investors' needs. In the interests of our shareholders and therefore in our self-interest, we must continue to urge the opening of markets overseas. Bartholet's belief has been borne out by experience.