The Sec May Not Have Enough Guns

In the 1980s, the deregulators missed the mutual funds. The web of rules that govern funds, such as those designed to prevent self-dealing, maintain the integrity of fund assets, and keep investors apprised of fund activities, went unchanged. But the funds boomed nonetheless, and perhaps because of the rules, the funds have avoided the sort of scandals that rocked other financial institutions and cost investors money.

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