WASHINGTON -- The American Bankers Association on Monday urged key lawmakers to subject mutual funds and other financial services companies to the same kind of disclosure requirements that banks face under the Truth-in-Savings Act.
While consumers now view a broad range of financial products as interchangeable, "there is no coherent government policy on disclosures by these various sectors of the financial services industry," said ABA president William H. Brandon Jr.
"One result is that consumers not only have incomplete information about some products, they are often actually misled when trying to compare the various alternatives for savings and investments," he added in a letter to the legislators.
A Level Playing Field Sought
Mr. Brandon wrote to the chairmen and ranking Republicans on the House and Senate banking committees, the House Energy and Commerce Committee, and the leaders of a number of key subcommittees.
Mr. Brandon, who is chairman of First National Bank of Phillips County, Helena, Ark., said banks are penalized for the detailed disclosures they provide under the Truth-in-Savings Act since other providers "are free to make misleading comparisons."