Fitzgerald presses mutual fund probe

CHICAGO, Nov. 17 (UPI) -- Sen. Peter Fitzgerald, D-Ill., fears more abuses will come to light in the mutual fund industry.

The chairman of the Senate Governmental Affairs financial management subcommittee told a news conference Monday federal regulators must determine whether mutual fund managers are paying corporate employees for access to workers' 401(k) retirement funds.

Fitzgerald, an investment banker by trade, called mutual fund industry reform "the most pressing issue now confronting the 95 million Americans who have invested their household, college and retirement savings in mutual funds."

"Congress needs to act quickly to protect mutual fund shareholders from abuse, but Congress must make sure that it has uncovered all the forms of abuse," Fitzgerald said.

The Washington Post said Fitzgerald also plans hearings on Thrift Savings Plan operations after reports of alleged hidden fees, market timing and late trading by mutual funds.

While not a mutual fund, TSP has 3.2 million participants, including federal employees and members of the armed forces. Its policy is set by the Federal Retirement Thrift Investment Board.