However, these measures represent only a starting point for needed industry reforms in fund governance and do not address crucial issues involving restitution to fund holders, fines and penalties.
Most importantly, this agreement does not address structural reforms necessary to ensure that investors are charged the lowest possible fees. Up until this point, mutual funds' fee structure has benefitted management companies at the expense of investors. This agreement completely fails to address this critical governance issue.
The SEC's document should not be viewed as a template for settlement with my office. My office will continue an investigation of Putnam.
