SEC Uncovers Breaches In Fund Lending Practices

Law360, New York (January 29, 2007, 12:00 AM EST) -- The Securities and Exchange Commission has sent deficiency letters to at least a handful of mutual funds over their securities-lending practices.

None of the mutual funds have been specifically named, and the deficiency letters are not public documents. The SEC did say, however, that they resulted from a two-year inspection, that less than 10 funds were looked at, and that almost all of them had at least one type of compliance breach.

“We felt that fund boards didn’t adequately establish procedures by which they would monitor...
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