The Securities and Exchange Commission’s probe into the mutual fund industry has now expanded to an investigation at the heart of how fund timing and/or late trading could have occurred in the first place: whether some fund companies allow large investors to peek at their holdings, officials told Reuters.

"It’s clearly an area that we’re focusing on," said the executive, Paul Roye, leader of the SEC’s division of investment management. "We’ve contacted most of the fund groups in the country on this very issue."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.