Although regulators didn’t bring many cases against mutual fund companies in 2006, that doesn’t mean that their scrutiny is going to let up, according to a white paper from SEI.In fact, the Securities and Exchange Commission has indicated it will continue to crack down on abuses in the industry.

“With its recent activity, the SEC is clearly sending a message that the compliance bar will be raised in 2007,” said Jim Volk, chief accounting officer and chief compliance officer in SEI’s investment manager services division. “At SEI, we’re sending the message that the best regulatory defense is a good offense.”

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