SEC Adds Fund Advisor Revelation Requirement

June 23, 2004 ( - The nation's chief securities regulator has accepted a proposal that mutual funds should be required to reveal why fund board members hired, or decided not to hire, an investment advisor.

The U.S. Securities and Exchange Commission on Wednesday voted 5-0 to require that revelation as part of a raft of reform measures designed to deal with issues arising from the continuing fund trading scandal, Reuters reported. State and federal regulators are probing abusive trading practices including late trading and market timing.

Some fund critics have complained that fund boards do little more than rubber-stamp the hiring of advisers from fund management companies.

More information about the SEC’s moves is at .