Mutual Fund Industry May Face New Rules

Mutual funds are intended to be mom-and-pop financial products whose investments can be sold off quickly. The funds were never meant to pile into markets where trades take weeks to complete. Some mutual funds, however, have lately been making bets that might be hard to get out of, especially in difficult market conditions. The stampede into investments that can be difficult to exit has regulators increasingly concerned. On Thursday, Mary Jo White, the chairwoman of the Securities and Exchange Commission, told a conference organized by The New York Times/DealBook that the agency was undertaking a comprehensive review of the mutual fund sector. One of the review’s major objectives is to assess whether some mutual funds are loading up on investments that would take too long to unwind. More in the New York Times here.