The fair disclosure regulation that the SEC approved Aug. 10 is causing widespread concern among mutual fund portfolio managers and analysts that it will stop the flow of corporate information needed to effectively run funds, executives said.

The new rule could have a "chilling" effect on the flow of information that funds need from securities issuers, said John Collins, a spokesperson from the Investment Company Institute of Washington. Issuers are likely to have lawyers thoroughly screen all information before releasing it - or not release it at all, Collins said.

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