Mutual Fund Governance Reforms: A Commentary

Abstract:     
Many have argued that one of the great flaws of democracy is that much-needed reforms often get pushed aside until a crisis places the issue on the public agenda. The flip-side of this observation is that many crises produce unneeded legislation. Particularly in the financial arena, in which public understanding of institutions and processes is poor, corporate scandals and failures are often perceived by the press and the public as the product of systemic failure. Politicians and bureaucrats alike risk a political lynching by failing to act decisively and building new legislative buttresses to shore up the apparently collapsing walls of state. Thus, new measures are adopted, whether they are truly cost-effective or not.

Number of Pages in PDF File: 32

Keywords: Mutual Fund, Corporate Governance, Canada, Securities, Law, Regulation

JEL Classification: K20, K22

Accepted Paper Series