Boards of directors at mutual funds engaging in illegal trading should be reviewed and if necessary, changed, former U.S. Securities and Exchange Commission Chairman Arthur Levitt said, according to a Reuters report.

Appointing an "ombudsman" to perform self-criticism, as many newspapers do, would be in the best interest of many fund boards currently under scrutiny, Levitt said. If the fund is found to have traded illegally, Levitt had a more drastic idea.

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