The U.S. Securities and Exchange Commission and the NASD are tackling the issue of fairness in mutual fund charges.

SEC chairman Harvey Pitt has asked the NASD, the Securities Industry Association, and the Investment Company Institute to convene a working committee under NASD’s aegis. The working committee will explore and recommend ways in which the industry can prevent abuses and eliminate errors in the calculation of sales loads, ensure the accuracy of and assist brokers in calculating sales loads, improve investor understanding of sales loads, and enhance disclosure of sales discounts.

“This is an issue that demands swift action by regulators, as well as the focused attention of the mutual fund and brokerage industries, others knowledgeable about the issue, and consumer advocates, to protect the investing public,” Pitt said.

At the same time, the North American Securities Administrators Association issued a statement applauding congressmen Michael Oxley and Richard Baker’s request for a study by the General Accounting Office of current trends in mutual fund fees, disclosure and transparency. “When evaluating mutual funds, investors need more information as well as more understandable information. The last few years have been difficult for individual investors. State securities regulators are working with their federal counterparts, Congress and the industry to restore confidence in our securities markets. Greater disclosure of fees charged by mutual funds will help investors as they weigh their investment choices,” said the NASAA.

Both the SEC and NASD have alerted investors to these issues and placed additional information on their Web sites.