Jones v. Harris Associates L.P.: The Search for Investor Protection Continues...

Abstract

Mutual fund investors have been and continue to be without representation in the fee negotiation room. This should come as no surprise since a mutual fund is the creation of its adviser. As a result, mutual fund advisers are handsomely rewarded to the point of excess. This article discusses the conflicted nature of the mutual fund structure, traces the development of law directed at remedying the problems faced by investors, and offers a new approach that is tailored to correct the shortcomings of the industry.