As legislators and regulators prepare to adopt more stringent regulation governing the mutual fund industry, some investment advisors will benefit from such rule changes while others will be harmed, according to Fitch Ratings.

"Firms with strong performance records, good compliance risk management systems, sufficient asset under management to absorb additional expenses, and the ability to generate new business independently will be best equipped to endure a stricter regulatory framework," said David Spring, director of the Chicago-based ratings agency.

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