Article: SEC Seeks Written Compliance Policies for Mutual Funds

The Securities and Exchange Commission proposed new rules yesterday that would require mutual funds to have written policies to ensure that the funds comply with federal securities laws.

The SEC also voted to seek public comment on whether the mutual fund industry could police itself through the creation of a new self- regulatory organization. The securities industry uses two self- regulatory organizations -- the New York Stock Exchange and NASD -- to oversee its firms.

The agency also voted to solicit public comments on whether to require investment advisers to carry insurance to protect customers in case of theft or fraud. Mutual funds already are required to carry such insurance.

The ...

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