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Article: Distributors emerge as funds' essential outsiders. (bank mutual funds)(Mutual Fund Roadmap)
- Article from:
- American Banker
- Article date:
- June 26, 1996
- Author:
CopyrightCOPYRIGHT 1996 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Even if the law no longer required It, many bank executives say they would still hire an experienced outsider to help them distribute their mutual funds.
As long as the Glass-Steagall Act remains on the books, bankers - with rare exceptions - can't choose to play the mutual fund game completely on their own. Legally, banks still must use an unaffiliated company to distribute their funds, shares to the public.
But as bank mutual fund programs mature, many executives are rethinking exactly what they want from these outside vendors.
At a minimum, a distributor must legally register, underwrite, and offer the fund shares for sale to the public. But ...