Time to eliminate mutual fund boards?

Now here's an interesting proposal. Peter Wallison and Robert Litan, two think tank types, in their book "Competitive Equity: A Better Way to Organize Mutual Funds" argue for eliminating fund boards--which have long been controversial--in favor of a "managed investment trust." They think it would instill a more free-market mentality that would eventually lead to fee competition. Boards today have shown a troubling disinterests in shareholder costs, the authors believe. The new structure in their view would feature simplified fees, performance fees that align management with investors and oversight that aims to protect shareholders. It's nice to see people taking a radical overhaul sort of approach. I doubt this change will ever happen. But the focus on competition, or lack thereof, is worthwhile.

For more:
- here's a MarketWatch article