Owing to controversial trading activities at its mutual fund unit, Bank of America Corp. reached an agreement with the Federal Reserve Wednesday under which the bank will keep the Fed notified of its progress in executing mutual fund-related reforms.

Specifically, the Fed announced that the bank agreed to put in place new procedures to monitor fund trades, assess risk, approve and monitor clients, conduct internal audits and meet other compliance functions related to mutual fund and securities regulations.

The agreement between the Charlotte, N.C.-based bank and the Federal Reserve Bank of Richmond is part of a coordinated review with the Securities and Exchange Commission and the Comptroller of the Currency.

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