If proper monitoring of fund flows had taken place, much of the market timing that has marred mutual fund firms may have been much easier to detect, Securities and Exchange Commission Chairman William Donaldson said Wednesday.

"It is clear with hindsight that if there had been monitoring of fund flow data – that is, purchases and redemptions of fund shares – directors might have been able to detect significant short-term trading in their funds and pursue whether there were abuses in this area," Donaldson told a conference of mutual fund directors.

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