9.3.2009 The Securities Industry and Financial Markets Association (SIFMA) filed an amicus brief with the U.S. Supreme Court in Jones v. Harris Associates, No. 08-586. In the case, a group of mutual fund shareholders sued Harris Associates over its management fees, claiming that the adviser breached its fiduciary duty by charging a fee more than twice as high as a similarly managed institutional account. The petitioners further argued that the fiduciary duty owed by a mutual fund to its shareholders is the same as the fiduciary duty a trustee owes its beneficiaries. SIFMA argues that is not the case.
Click http://www.sifma.org/regulatory/briefs/2009/Jones-vs-Harris-082709.pdf to access the brief.
A number of other trade groups have also filed amicus briefs in the case.
Click http://www.ici.org/jvh/news/09_news_jvh_ici_brief to access the press release on the amicus brief filed by the Investment Company Institute (ICI) in support of the response; the ICI urged the Court to “endorse the longstanding legal framework that most courts have used since the 1980s to evaluate claims that a mutual fund’s investment adviser has received excessive compensation.”
Click http://www.ici.org/pdf/09_scotus_jvh_idc_brief.pdf to access the brief filed by the Independent Directors Council on behalf of the mutual fund adviser.