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We use an experiment to estimate the effect of the SEC's Summary Prospectus, which simplifies mutual fund disclosure.
The S.E.C. has worked to improve fund disclosure, but most of the discussion has centered on fees.
Mercer Bullard, a former S.E.C. lawyer who has said greater mutual fund disclosure could help avert the practice, said "two portfolio pumping cases in two months is a radical departure for the S.E.C".
In his five years as the fund industry's top regulator, Mr. Barbash oversaw the adoption of regulations that simplified fund disclosure documents and provided investors with more information about mutual fund fees and investment risks.
Others participating in the new round include Lerer Ventures, AOL's BBG Ventures fund (disclosure: AOL owns TechCrunch) and Montage Ventures.
While the SEC works to increase fund disclosure, it has already implemented a rule that will require all funds to employ a chief compliance officer, reporting to the board, who will be responsible for ensuring that fund operations are aboveboard.
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In a statement, Mr. Levitt cited other S.E.C. initiatives intended to improve mutual fund disclosures.
The suggested changes — which are voluntary rules — are an effort to straddle the gaping divide between public sector unions, their supporters and public pension consultants on one side and, on the other, economists who have criticized the official fund disclosures as misleading and fiscally unsound.
Mr. McConnell, a self-described expert on the Constitution, lectured his colleagues on the purported violations of the document in the slush-fund disclosure bill.
But scrutiny beyond funding disclosure can be significantly disruptive and discourage scientists from pursuing policy relevant research.
Hedge funds' disclosure obligations under the Dodd-Frank Act are still rather generic, the SEC has not yet standardized the requirements, and it is unclear if the SEC will expand the systemic risk disclosure obligations for hedge funds investing in distressed securities.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com